Brazilian Congress decides to levy higher taxes on cryptocurrencies
If approved, the legislation will subject crypto assets held by Brazilians abroad to the same tax rules governing traditional assets.< /p>
Brazilian lawmakers are moving forward with legislation that would increase taxes on cryptocurrencies held overseas. According to local reports, a congressional committee has approved amendments to a bill that recognizes cryptocurrencies as "financial assets" for tax purposes in foreign investments.
In addition, the bill taxes gains from fluctuations in the prices of crypto assets against Brazil's fiat currency, as well as fluctuations in exchange rates. According to Congressman Merlong Solano, the revision aims to promote equal tax treatment since offshore crypto investments currently receive less tax breaks.
The legislation places crypto assets held by Brazilians abroad under the same tax rules as traditional assets.Overseas income up to 6,000 Brazilian reais (~$1,200) will be exempt from tax under the new rules. Winnings between 6,000 and 50,000 (~$10,000) are subject to a tax rate of 15%. Above this threshold, taxes will be applied at 22.5%.
As per the law, the changes will only apply to cryptocurrency exchanges without offices in Brazil. The new rules could make local exchanges a cheaper option for some investors, especially those with earnings above the top tax bracket, legal experts have said. Additionally, the law could boost crypto exchange activity domestically and incentivize foreign players to establish offices in the country.
A number of global crypto exchanges operate in the country, including Binance, Coinbase, Bitso, and Crypto.com, as well as local players such as Mercado Bitcoin and Foxbit.
The Brazilian Congress will vote on the bill on August 28. If approved, the new tax will come into effect in...
If approved, the legislation will subject crypto assets held by Brazilians abroad to the same tax rules governing traditional assets.< /p>
Brazilian lawmakers are moving forward with legislation that would increase taxes on cryptocurrencies held overseas. According to local reports, a congressional committee has approved amendments to a bill that recognizes cryptocurrencies as "financial assets" for tax purposes in foreign investments.
In addition, the bill taxes gains from fluctuations in the prices of crypto assets against Brazil's fiat currency, as well as fluctuations in exchange rates. According to Congressman Merlong Solano, the revision aims to promote equal tax treatment since offshore crypto investments currently receive less tax breaks.
The legislation places crypto assets held by Brazilians abroad under the same tax rules as traditional assets.Overseas income up to 6,000 Brazilian reais (~$1,200) will be exempt from tax under the new rules. Winnings between 6,000 and 50,000 (~$10,000) are subject to a tax rate of 15%. Above this threshold, taxes will be applied at 22.5%.
As per the law, the changes will only apply to cryptocurrency exchanges without offices in Brazil. The new rules could make local exchanges a cheaper option for some investors, especially those with earnings above the top tax bracket, legal experts have said. Additionally, the law could boost crypto exchange activity domestically and incentivize foreign players to establish offices in the country.
A number of global crypto exchanges operate in the country, including Binance, Coinbase, Bitso, and Crypto.com, as well as local players such as Mercado Bitcoin and Foxbit.
The Brazilian Congress will vote on the bill on August 28. If approved, the new tax will come into effect in...
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