The Senate Plenary Assembly approved on Wednesday afternoon (29) bill 4173/23, which aims to tax investments made by individuals in companies outside Brazil.
The project underwent significant changes from the original proposal, with the most notable change being the approval of the project flat rate of 15%thus eliminating any possibility of exemption.
Now that the project has been approved, Bitcoin and cryptocurrency income from brokers outside Brazil, such as Binance, Coinbase, Kucoin, Bybit, OKX, Bitstamp, Bitfinex, Gate.io, Crypto.com, Bithumb, Upbit, MEXC, HTX (Huobi), Poloniex), Probit, BitMart, Bitso and several others, will have taxes up to 15%.
From January 1, 2024, Brazilian investors must report income from capital invested abroad separately from other income and capital gains.
In the annual adjustment return (DAA) for personal income tax (IRPF), income values are subject to a rate of 15%, without deduction from the calculation basis.
15% tax on Bitcoin and cryptocurrencies at brokers outside Brazil
The decision replaces the original proposal of the project which provided for a progressive tax rate structure, with a maximum rate of 22.5% on income above R$50,000, and exemption for annual income below R$6,000.
According to Ana Paula Rabelo, an accountant specialized in cryptocurrencies, the project also introduced a section discussing the treatment of cryptocurrencies and digital wallets as financial applications abroad.
This arrangement is the responsibility of the Special Secretariat of the Federal Tax Administration of Brazil, which is linked to the Ministry of Finance.
In addition, an article has been added requiring that companies operating with cryptocurrencies in Brazil, regardless of their headquarters, provide periodic reports on their activities and their customers to the Federal Revenue Service and to Financial Activities Control Council (COAF).
There was also a review of the issue of compensation for losses. While the preliminary formulation of the project allowed the deduction of losses only on operations of the same nature, the updated version removes this restriction, suggesting the possibility of offsetting losses with investments of different nature abroad, such as stocks and cryptocurrencies.
*Text in development…
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.
