The Brazilian Federal Tax Agency should expand tax collection on the cryptocurrency market and now focus on foreign brokers. The new recommendation came from the CPI das Pirâmides Financeiras, in its final report voted on last Monday (9).
Since 2019, the prescription has required Brazilian investors in bitcoin and cryptocurrencies to declare their holdings. The obligation also rests on the part of cryptocurrency brokers operating in Brazil, who must declare their activities to the agency.
But the CPI’s new final report asks the RFB to change the rules, expanding the collection of information from foreign brokers operating in Brazil.
“The amendment of Normative Instruction No. 1888, of 2019, to update the concept of crypto assets and expand the duty to report transactions involving crypto assets by local representatives of foreign exchanges (brokers).”
What should change if the IRS expands tax collection on foreign cryptocurrency brokers in Brazil?
Federal deputies of the CPI das Pirâmides Financeiras believe that operations in foreign cryptocurrency brokers could constitute tax evasion.
Therefore, all companies and their representatives must “have the obligation to report to the Brazilian Federal Tax Secretariat transactions involving crypto-assets whose monthly value, individually or cumulatively, exceeds R$30,000 per CPF.”
As justification, delegates believe that the measure combats tax evasion in Brazil, with information from all Brazilian investors in bitcoin and cryptocurrencies.
“This recommendation will introduce a new procedure to reduce tax evasion, making it possible to compare the information reported by users with the information reported by financial service providers to foreign exchanges.”
Foreign brokers must pay taxes in Brazil, delegates argue as they call for an administrative procedure
In addition to asking cryptocurrency brokers to declare their clients’ bitcoin investments, the IRS also wants to determine whether companies collect taxes in Brazil.
To this end, they request the initiation of an administrative process to investigate the collection of taxes by these companies. According to parliamentarians, taxes should be levied on platforms that earn billions from Brazilians.
“Initiating administrative procedures on the collection of taxes from foreign PSAVs operating in Brazil. It is necessary to demand taxes from these exchanges (IRPJ, CSL, PIS, COFINS and IOF) on brokerage income earned through their branches in Brazil or through intermediate legal entities, in
because they benefit from the billions of reais traded annually in their activities in the country with Brazilian consumers.”
The CPI’s final report also called for investigations into several crimes in Brazil, mainly financial pyramids. All recommendations for the Federal Tax Authorities should be forwarded to the Minister of Finance, Fernando Haddad.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.