PANews June 6 report, according to Bitcoin.com, the Brazilian government is considering taxing cryptocurrency transactions to alleviate the social impact of the increase in the financial transaction tax (IOF). After the government announced an increase in the IOF tax rate on May 22, House Speaker Hugo Motta proposed in a public speech to include cryptocurrencies in the tax scope, but emphasized that the proposal has not yet been finalized.
This proposal has sparked controversy in the Brazilian cryptocurrency industry. Vanessa Butalla, Vice President of Legal Affairs at Mercado Bitcoin, pointed out that according to current regulations from the Brazilian tax authority, taxing cryptocurrencies with IOF is equivalent to taxing investment properties, which lacks legal basis. Daniel de Paiva Gomes, a partner at Paiva Gomes law firm, further emphasized that only congressional legislation can classify cryptocurrencies as taxable assets, and the government only has the authority to adjust tax rates and deadlines.
