Taxation Earnings
Taxation of gains realized by individuals from investments in investment funds.
Until December 31, 2022, gains from investments in open-end investment funds are taxed at 10%. The flat rate applies irrespective of the date of purchase or holding period, the provision applies to individuals only. BT Asset Management SAI has not withheld the withholding tax due. The investor is solely responsible for declaring the income earned.
Legal entities:
Record gains or losses resulting from the sale of fund units in the accounts.
As from 01.01.2023, the gains obtained by individual investors from investments in open-end investment funds will be taxed by withholding at source as follows:
- by applying a rate of 1% to each gain on the transfer of securities which have been acquired and disposed of within a period of more than 365 days, inclusive, from the date of acquisition;
- by applying a rate of 3% to each gain on the transfer of securities which have been acquired and disposed of within a period of less than 365 days from the date of acquisition;
The FIFO (first in - first out) method is used to determine the holding period of the redeemed fund units and their classification in one of the two tax brackets, by calculating the number of days elapsed between the issue date of the fund units and the date of the cancellation of the fund units subject to the redemption transaction.
From 01.01.2023 onwards, realized losses on redemption transactions of fund units are not carried forward, as they represent definitive losses of the investor, irrespective of the date on which they were recorded.
In the situation in which individual taxpayers obtain cumulative annual income from several sources: investments, self-employment, liberal professions, rents, etc. higher than the ceiling set by the Fiscal Code, taxpayers also owe the social health insurance contribution (CASS), according to the applicable legal provisions. Exceptions to the payment of social security contributions are set out in the specific legal framework in force.
