Brazil approved 15 % flat tax on cryptocurrency profits
The Brazilian government approved a 15 % tax on cryptocurrency operations and profits starting January 1, 2024
Brazilian authorities recently approved a flat 15 % tax on profits from cryptocurrency transactions that will come into effect on January 1, 2024.
According to local newspaper Diário Official da União, the bill was signed on December 12 by President Luiz Inácio Lula da Silva, and establishes that crypto assets of Brazilians abroad will be subject to taxes.
According to the new bill, “crypto income and dividends received by Brazilian taxpayers from investment funds, platforms, real estate or external trusts will also be subject to the new taxes.”
With the approval of this measure, the South American country hopes to raise an additional 4 billion reais ($20 billion) in 2024.
It has been indicated that “those who begin paying their taxes in 2023 will obtain a discount for prompt payment.” Specifically, they will pay an 8 % tax on all income obtained until the end of this year “in installments, with the first payment in December. The new tax rate will be 15 % starting in 2024.”
Brazilian legislation has evolved in recent months regarding cryptocurrencies, in order to regulate transactions inside and outside the country, in addition to protecting citizens’ assets and providing confidence to investors.
According to the controller of stablecoin issuer Transfero, João Carlos Almada, “income from digital assets has already been taxed before in Brazil.” However, he did not rule out that the legislation requires further elaboration on some points.
Brazil appears to be following in the footsteps of Spain, where last November the Tax Agency stressed the need for “natural persons to disclose any cryptocurrency they hold abroad.” In the European country, those who are subject to paying taxes are those with a net worth of over fifty thousand euros.
M.Pino
Source: cripto247
(Reference image source: Ewan Kennedy, Unsplash)
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