According to a recent report by CoinDesk, the Brazilian government officially announced on June 14 the abolition of its long-standing tax exemption policy for cryptocurrency gains. According to the newly issued Provisional Law No. 1303, all individuals will be taxed at a uniform rate of 17.5% on profits obtained from Crypto Assets.
This policy change marks a significant shift in Brazil's Crypto Assets tax system. Previously, Brazilian residents could enjoy full tax exemption on the sale of Crypto Assets valued at no more than 35,000 reais (approximately 6,300 USD) per month. For transactions exceeding this limit, a progressive tax rate mechanism is applied, with a maximum tax rate of 22.5%, which primarily applies to large transactions exceeding 5.4 million USD.
From a global perspective, the imposition of specific taxes on Crypto Assets has become an inevitable direction for the development of financial regulation in various countries. As the Crypto Assets market matures, tax compliance has become a necessary stage for the industry's development. Currently, many countries around the world have established tax frameworks for Crypto Assets, and Brazil's recent policy adjustment also reflects this international trend.
This tax reform may have a significant impact on small crypto investors in Brazil, while also laying the foundation for the long-term regulation and development of the country's crypto market.
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According to a recent report by CoinDesk, the Brazilian government officially announced on June 14 the abolition of its long-standing tax exemption policy for cryptocurrency gains. According to the newly issued Provisional Law No. 1303, all individuals will be taxed at a uniform rate of 17.5% on profits obtained from Crypto Assets.
This policy change marks a significant shift in Brazil's Crypto Assets tax system. Previously, Brazilian residents could enjoy full tax exemption on the sale of Crypto Assets valued at no more than 35,000 reais (approximately 6,300 USD) per month. For transactions exceeding this limit, a progressive tax rate mechanism is applied, with a maximum tax rate of 22.5%, which primarily applies to large transactions exceeding 5.4 million USD.
From a global perspective, the imposition of specific taxes on Crypto Assets has become an inevitable direction for the development of financial regulation in various countries. As the Crypto Assets market matures, tax compliance has become a necessary stage for the industry's development. Currently, many countries around the world have established tax frameworks for Crypto Assets, and Brazil's recent policy adjustment also reflects this international trend.
This tax reform may have a significant impact on small crypto investors in Brazil, while also laying the foundation for the long-term regulation and development of the country's crypto market.