Brazil Ends Crypto Tax Break, Imposes 17.5% Flat Rate
The post Brazil Ends Crypto Tax Break, Imposes 17.5% Flat Rate appeared on BitcoinEthereumNews.com.
Brazil has ended its tax exemption for small-scale crypto profits, introducing a 17.5% flat rate on all capital gains from digital assets. The new rule was announced under Provisional Measure 1303 as part of the government’s push to raise revenue through financial market taxation. Until now, Brazilian residents who sold up to 35,000 Brazilian reals (roughly $6,300) in crypto assets per month were exempt from income tax. Gains beyond that were taxed progressively, starting at 15% and reaching as high as 22.5% for volumes above 30 million Brazilian reals. The new flat rate, which went into effect starting June 12, removes all exemptions and applies equally to all investors regardless of the size of their transactions, according to a report by local news outlet Portal do Bitcoin. While smaller investors will now face higher tax burdens, high-net-worth individuals could end up paying less. Under the previous system, large trades, those exceeding 5 million Brazilian reals, were taxed between 17.5% and 22.5%. With a uniform 17.5% rate now in effect, many large investors will see their effective tax rate drop. Provisional Measure 1303. Source: Brazil Government Related: Circle gains 10% on deals with Brazil’s Matera, Altman’s World Brazil targets self-custody and offshore crypto The provisional measure also expands the tax base. Crypto assets held in self-custody wallets and foreign crypto holdings are now included in the tax regime. Per the report, taxation will be assessed quarterly, with investors allowed to offset losses from the previous five quarters. However, from 2026 onward, the window for loss deduction will be tightened. The overhaul extends beyond crypto. Fixed income instruments, once exempt from income tax, such as Agribusiness and Real Estate Credit Letters (LCAs and LCIs), as well as Real Estate and Agribusiness Receivables Certificates (CRIs and CRAs), will now incur a 5% tax on…
Filed under: News - @ June 15, 2025 7:20 am