The post Brazil Ends Crypto Tax Exemption, Sets 17.5% Flat Rate appeared on BitcoinEthereumNews.com.

Brazil ends small-scale crypto tax breaks, sets 17.5% flat rate. Self-custody and foreign-held crypto assets now face taxation in Brazil. Fixed income gains taxed 5%, ending long-standing investor exemptions. Brazil has officially ended the tax exemption for small-scale cryptocurrency profits and introduced a flat 17.5% tax rate on all capital gains from digital assets. This decision was stated in Provisional Measure 1303, by the government in order to hike revenue by the use of taxation and the financial markets. Brazil Expands Tax to Self-Custody and Foreign Crypto Assets Before, those who trade up to Rs35,000 per month in cryptocurrencies were not paying any tax as Brazilians. Any amount of profits that exceeded this limit but did not surpass R 5 million were to be taxed at 15 percent. The new rule will mean that all crypto traders will now be equally taxed, irrespective of the amount that he or she trades. This implies that the already exempted people are going to pay tax, become tax payers, for the first time. Moreover, the investors that worked within the previous threshold will also have to pay more taxes. The new measure might, on the contrary, favor the bigger investors. The older system had investors who exchanged R$5.00 million and more pay a sliding tax rate. Previously, Brazil used a tiered tax system for high-volume crypto traders. For example, those trading between R$5 million and 10 million paid 17.5%, while trades over R$30 million were taxed at 22%. However, the new rule introduces a flat 17.5% tax rate for all investors. As a result, smaller investors will now face higher taxes. Meanwhile, some large investors may actually pay less than before under this uniform tax policy. The government has also widened taxes. Self custody crypto assets will now be taxed, and crypto assets…

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Filed under: News - @ June 15, 2025 7:16 pm