Brazil has completed a tax exemption regarding compact -scale cryptographic profits, introducing a gross rate of 17.5% of all capital gains from digital assets. The fresh rule was announced in accordance with the fact that a short-lived center of 1303 as part of the government’s aspiration to enhance revenues by taxing the financial market.
Until now, Brazilian residents, who sold up to 35,000 Brazilian reality (about USD 6,300) in cryptographic assets per month, were exempt from income tax. The profits above were taxed gradually, starting from 15% and reaching up to 22.5% for volumes over 30 million Brazilian realis.
The fresh rate of Zryczba, which has entered into force from June 12, removes all exemptions and applies equally to all investors, regardless of the size of their transactions, According to to the local information portal report for Bitcoin.
While smaller investors will now face higher tax burdens, people with high net value may ultimately pay less. According to the previous system, enormous transactions, exceeding 5 million Brazilian reality, were taxed from 17.5% to 22.5%. With a uniform rate of 17.5%, many enormous investors will see their effective decrease in the tax rate.
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Brazil is aiming at self -defense and crypto at sea
The short-lived measure also extends the tax base. Cryptocurrency assets taking place in self -congestion portfolios and foreign cryptocurrencies are now included in the tax system.
According to the report, taxes will be evaluated quarterly, and investors may balance losses from the previous five quarters. However, from 2026, the window to deduct losses will be tightened.
The inspection extends outside the crypto. Instruments with eternal income, after release from income tax, such as agribusiness and credit lists of real estate (LCAS and LCIS), as well as certificates of real estate and agribusiness receivables (Cris and Cras), will now incur 5% of the profit tax.
Meanwhile, taxation of revenues from plants increased from 12% to 18%.
The Ministry of Finance introduced these changes after response to an earlier attempt to enhance tax on financial transactions (IOF). This proposal was put on a shelf after facing a forceful opposition from both the market and the congress.
Related: Brazilian data supervision maintains the ban on global cryptographic payments
Brazil is considering permission to pay bitcoins
In March, Brazilian legislators presented a proposal that would allow employers to partially pay employees in cryptocurrencies such as Bitcoin (BTC). According to the proposed regulations, cryptographic payments may not exceed 50% of the employee’s remuneration.
Full cryptographic payments would only be allowed for foreign employees or contractors and only under certain conditions specified by the Brazilian Central Bank. The draft act prohibits paying wages in full in digital assets for standard employees.
Legislation would also allow independent contractors to receive full cryptography payment if the contract has been agreed. All cryptographic payments must exploit official exchange rates from institutions authorized by the Central Bank.
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