Romania - capital gain tax

Hello everyone!

How does taxation of capital gains work for Romania? Is Trading212 sharing info with tax authorities, or it’s your duty to report the gains and then pay the capital gain tax?

It should be reported/paid when you sold the stocks and withdraw it to your bank account?

Thanks

Hi, I spoke to my accountant here in London this week. Basically you need to declare everything you earn or have ! 212 Trading may or may not submit to the authorities. It is your job to do it yourself. So if trading is your only job you will be taxed 10% of your earnings from which you can deduct £12500 (tax free allowance). If you have another job and you do trading on the side, you will be taxed 20% instead of 10%.
You will not be taxed on your initial investment, only the gains.
You can download your history in 212 Trading and have all details of your transactions which you can forward to your accountant which is what I did.
If you have invested in your ISA account, you won’t be paying any taxes or your earnings. You can whithdraw as much as you like but you cannot add anymore money in it. 20K between April 6 until the 05th from next year and then you can add on another 20K the year after. But obviously each countries have their own rules … So check with an accountant if your gains are high.

1 Like

That’s absolutely correct, so most of the information (CTG allowance, tax rates and ISA) does not apply to the OP’s questions.

@dan.cretu I hope someone in the forum can give you more information, however, it is always recommended to check the rules through the official routes in your country.

1 Like

Whether they report it or not it is still your responsibility to do so and pay taxes accordingly. If 5 years later you try to use some money in a bank unaccounted for (housing deposit) don’t be surprised if you’re charged with tax evasion

1 Like

Dan,
When you make a sell you make a profit/loss, no matter where the money are located.

In Romania:
For all the profit/loss made in the period 01.01.2020 - 31.12.2020 you need to declare to the tax authorities until end of March next year. In 2021 they extended it to May.
If you are not sure how to fill in the tax declaration I would advise contacting an accountant.

1 Like

Thanks, that’s helpful!