Brazil has removed a long-standing tax exemption on cryptocurrency gains, with a new provisional measure (MP 1303), imposing a tax of 17.5% on all cryptographic benefits for individuals.
Previously, people selling up to 35,000 R $ (approximately $ 6,300) of crypto per month were exempt from tax. Before the change, the earnings higher than those which have been gradually imposed, reaching up to 22.5% for volumes of more than $ 5.4 million.
The new rule replaces this system with a flat -rate tax, which means that small investors will face higher tax charges while large holders can see their invoices shrink, the local press portal makes bitcoin reports.
The tax will apply, whatever the place of assets, including in overseas scholarships or auto-us wallets. The losses can be offset, but only in a five -quarter rolling window, a rule that will become stricter from 2026.
The government claims that the overhaul aims to stimulate tax revenue after recovering a hiking projection to the IOF financial transactions, which had attracted industry and criticism of the congress.
In addition to the crypto, the new measure affects fixed income investments and online bets, the first now incurring a fixed tax of 5% on profits and the last by seeing taxes on operators from 12% to 18%.
