Five tips for declaring cryptocurrencies IRPF 2023

O capital invited Ana Paula Rabello, an accountant specializing in crypto-asset taxation and author at Declaring Bitcoin, to guide in declaring crypto-assets in the Individual Income Tax 2023.

In addition to the tips below, Ana Paula Rabello will be answering questions live on 5/29, Monday, 4 p.m., on Capital’s Instagram channel.

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The Federal Tax Service of Brazil has been closely following the evolution of cryptocurrencies. Declaring crypto assets has become mandatory and failure to do so can lead to fines and a lot of headaches. If you haven’t given up on your crypto assets yet, here are five top tips.

Use the Pre-Filled Declaration to avoid basic errors:

Download the IRPF2023 program directly from the Federal Tax Administration website, available at

After installing the program, use the “Start Declaration from the Pre-Filled” option, available for Gold and Silver Gov.BR Accounts.

Organize your administration:

An accurate record of all your cryptocurrency transactions is crucial for accurate reporting. This includes purchases, sales, donations, exchanges and mining receipts.

You need this data to calculate your capital gain or loss. Also, having well-organized records can be helpful if the IRS asks for more information or decides to audit your tax returns.

Access your broker information:

To declare your activities with crypto assets, it is important to have access to information from your brokers or exchanges.

This includes the balance of your cryptocurrency accounts, the fees paid for performing operations, as well as the reports of transactions performed. Remember, this year the Federal Tax Service will report the quantitative balances reported by national brokers as of 12/31/2022. Please note the importance of using a broker who provides you with readable statements.

Be careful when completing the following items in the Declaration:

  • Enter the Gcap2022 in the months in which the sum of your sales (purchases and exchanges) in the month exceeds R$ 35 thousand. Extract the file from Gcap2022 to import your earnings subject to exclusive/final IRPF2023 tax there;
  • Add up the exempt income for all months in which it had a positive result and whose sales and exchanges did not exceed R$35 thousand in that month. Inform the result of this amount in ‘exempt and non-taxable income’ referring to the sale of goods or a set of goods of small value;
  • Fill in the “Assets and rights” form with the code corresponding to the asset, specifying the quantity, denomination and where it is held. In the balance column on 31/12/2022, enter the amount corresponding to the balance based on the acquisition value of the asset.

Correction of information:

If an error or omission is identified in the foregoing statements, you may correct them through rectification. It is possible to rectify the last 5 years of the income tax return.

If the Pre-Filled Declaration contains incorrect information about balances with national brokerage firms, please correct this information before filing. Contact your brokerage to request arrangements.

These are some important tips when declaring your crypto assets in income tax. However, it is important to remember that many surgeries do not have clear rules and regulations.

It is therefore recommended that you consult a tax professional to ensure that your returns are accurate, with taxes appropriate to your wealth situation. REMEMBER THAT ERRORS MAY RESULT IN PAYING UNDUE TAXES AND FINES.

Source: Live Coins