brazil CFN

  • Brazil’s 17.5% flat crypto tax removes small investor exemptions and reshapes compliance rules across all digital asset holders.

  • Méliuz raises R$180M to expand its Bitcoin treasury, reinforcing corporate confidence in BTC as a hedge and long-term store of value.

  • The new tax policy aligns Brazil’s crypto, betting, and fixed-income rules under a unified framework aimed at boosting state revenues.

Brazil has introduced a 17.5% flat tax on all crypto profits, ending exemptions previously enjoyed by small investors. This change follows Provisional Measure No. 1303 and will impact all retail investors, regardless of transaction size or platform. The new policy replaces the prior R$35,000 monthly exemption and eliminates the earlier progressive tax structure. Consequently, small and mid-sized traders now face higher tax burdens, while large-scale investors enjoy reduced effective rates.

Besides crypto, the government also increased taxes on online betting and fixed-income securities. These sweeping reforms signal a shift in fiscal strategy, aiming to harmonize financial product taxation. Additionally, the IOF tax increase plan was dropped, reflecting a change in revenue collection priorities. Authorities now require individual investors to report crypto gains quarterly, with losses offset allowed for up to five previous quarters. However, this loss offset window will be restricted starting in 2026, reducing future tax advantages.

Retail and Institutional Investors Face New Rules

Moreover, the new tax regime treats small crypto holders like institutional players. Investors previously taxed on gains above R$35,000 monthly now face a single 17.5% rate. This eliminates room for tax arbitrage and simplifies compliance. However, corporate entities remain under different tax structures and cannot offset losses using virtual asset performance.

The reforms also removed tax-free status from fixed-income instruments like LCAs and LCIs. A 5% tax now applies, affecting sectors such as agriculture and real estate. Meanwhile, online betting platforms will pay 12% to 18% in operator revenue taxes. These do not cover company income or user winnings but reflect the government’s intent to widen its tax base.

Méliuz Doubles Down on Bitcoin Treasury Strategy

Brazilian fintech Méliuz raised R$180 million ($32 million) through a follow-on share offering to purchase Bitcoin. The shares sold at a 5% discount, showcasing investor confidence in its crypto strategy. The firm currently holds 320.25 BTC and aims to expand its digital reserves further.

Moreover, Méliuz positions itself as Brazil’s first corporate Bitcoin treasury holder. Its move reflects Bitcoin’s growing appeal as a hedge against inflation and currency risks. Hence, its tech-savvy customer base and brand alignment make crypto adoption a logical step. The Bitcoin strategy also enhances balance sheet strength, especially amid global financial uncertainties.

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