Abstract
Abstract This article discusses a number of conceptual and practical issues regarding the taxation of the income coming out from the transfer of virtual currency. The individuals who earn constant money from cryptocurrencies (over 600 lei per year) have the obligation to report their income yearly and to pay the income tax and the health insurance contributions in certain situations. According to the provisions of the Tax Code, the gains from cryptocurrency transfers will fall into the category of the taxable income from other sources. For individuals, this income will be declared through the Single Taxation Statement during the year following the year of its realization. Specifically, the earnings from cryptocurrencies in 2019 will be declared in 2020. As long as an individual keeps his income from cryptocurrencies in the form of cryptocurrencies, without actually using them, he is not obliged to declare them and pay the income tax and the Social health insurance contribution for them.
Highlights
Mantu (2019) considers that cryptocurrencies „arose from the need to use an alternative currency, which does not require the presence of a managing authority, which operates beyond the political climate and which is easy to transfer”
By the Law no. 30/2019 for the approval of the GEO no. 25/2018, the Romanian legislators regulated the tax regime applicable to the incomes from the virtual currency transfer, eliminating the uncertainties that hovered over the taxation regime of these incomes
The cryptocurrencies have emerged in the mainstream of the financial operations out of the need to use an alternative currency, which is easy to transfer and which does not require the presence of a managing authority
Summary
Revenues obtained from the cryptocurrency transfer have to be declared, for the first time, in 2020, once the Tax Code has undergone several changes in order to. Romania is one of the few countries that has adapted its tax system in order to include the cryptocurrency revenues It will be very difficult for the Cernușca, L., Gomoi, B.C., Bilți, R.S., Almași, R.C., (2020) Study on the taxation of the income obtained from the cryptocurrency transfer. The most popular virtual currency, as well as other digital coins, can serve as a method of paying employees' salaries by the companies This decision taken by the New Zealand authorities is a first step in introducing Bitcoin (and other digital coins) as a form of payment in everyday situations and highlights the need to regulate them, characterized by decentralization, anonymity, and volatility (Duiu, 2020b). - the method of taxing the gains from the cryptocurrencies; - the way of reporting the revenues obtained from the cryptocurrencies through the Single Taxation Statement; - the way of filling the Single Taxation Statement for the taxpayers obtaining earnings from the cryptocurrencies
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