Brazil Creates New Crypto Bill, Imposes 15% Tax

Liputan6.com, Jakarta Brazil plans to change cryptocurrency taxation. Quote News.Bitcoin, Tuesday (9/4/2024) the country created a new Draft Law (RUU) that regulates the taxation of crypto investments for individuals.

This bill allows crypto assets to be taxed the same as shares and capital instruments with variable exchange rates.

According to the proposal that will be presented in the coming days to the Brazilian National Congress, crypto investors will have to pay 15% of the income of operations carried out with cryptocurrencies.

Currently, cryptocurrency profits in Brazil are taxed as goods and must pay capital gains tax depending on the volume transacted, starting from 15% for volumes lower than 5 million reais (USD 990,000).

Transactions above 30 million reais (close to USD 6 million) pay 22.5%, with a lower tax percentage for medium volumes.

This tax regime applies to cryptocurrencies and non-fungible tokens (NFTs) traded by investors who transact more than 35,000 reais (close to USD 7,000) every month on all platforms where they are registered. This value is higher than the lower limit on shares, which is currently set at 20,000 reais (close to USD 4,000).

However, it remains to be seen whether the new law in Brazil will change this limitation, allowing crypto investors to be exempt from paying taxes for trading small amounts of cryptocurrency.

The changes to the law are expected to be implemented in 2025, but Brazil's Congress needs to pass the law, which has been in development for more than a year.

This new tax bill marks part of the increased scrutiny the Brazilian government is starting to place on crypto.

In February 2024, Brazil's crypto tax authority detected irregularities in more than 25,000 cryptocurrency tax reports, combining traditional and artificial intelligence techniques to identify these issues.

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