Exploratory study on accounting and taxation of virtualcurrencies by Romanian companies

Author:Mirela PAUNESCU

JEL:M41

DOI:10.20869/AUDITF/2018/150/009

Keywords:Virtual currency, Bitcoin, accounting and reporting, taxation

Abstract:
As virtual currencies became more common and utilized by various users, companies or individuals, the question about if and how to tax for them could no longer be ignored. The rise and fall of Bitcoin in the last year, the increasing number of Initial Coin Offerings and the growing number of virtual currencies being launched recently, made everyone alert to the topic. This is why, lately, more and more regulators chose to come up with clarifications about how to account (and tax) for virtual currencies. Romania, unfortunately, is not one of those countries that chose to adapt their legislation to take into account virtual coins. Ambiguity governs the use of virtual currencies, their nature and the rules to account for transactions involving virtual currencies. In this paper, we analyze the difficulties faced by the corporate entities which use virtual currencies in their activity and so have to pay corporate tax.

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