The post Stakeholders express concern over Brazil’s new tax rule appeared on BitcoinEthereumNews.com.

All crypto investors in Brazil now have to pay tax on their profits after the government removed the tax exemption for small crypto holders. With the move, crypto holders must now pay a flat 17.5% rate on their monthly profits. The resolution is part of Provisional Measure 1303 from the country’s Ministry of Finance as part of the government’s effort to raise revenue. Before its implementation, investors who sold up to 35,000 Brazilian Real ($6,300) digital assets within a month did not have to pay tax. In contrast, those who sold above got taxed progressively, varying between 15% and 22.5%. However, the new flat rate of 17.5% means that everyone will pay the same amount regardless of the value of their transactions. This represents a positive development for largeholders, while smallholders may have to deal with the tax burden. Interestingly, crypto was not the only one affected by the new rule. Fixed-income securities were also affected as the government has imposed a 5% tax on the previously tax-free financial products. The tax on betting revenue also increased from 12% to 18%. Under the rule, taxation assessment will be done quarterly instead of monthly, as is currently the case with investors able to offset losses from the previous five quarters. Concerns from stakeholders about the impact of new tax rules Meanwhile, the new tax regime has attracted concerns from crypto stakeholders, many of whom believe that it could force many investors to opt for exchanges and brokers that do not have headquarters in the country so they can avoid the tax burden. According to Brazil-based crypto news outlet Portal do Bitcoin, crypto exchange Mercado Bitcoin questioned the reasoning behind the new rule in a public statement, noting that policymakers failed to engage with industry stakeholders before announcing the rules. It said:…

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Filed under: News - @ June 15, 2025 3:12 pm