In Brazil, transactions with cryptocurrencies are subject to taxation in accordance with current legislation. Cryptocurrency taxation varies depending on the type of operation carried out and the total value of transactions throughout the year. Here are some general guidelines:
Capital Gains: Capital gains obtained from the sale of cryptocurrencies are taxable and must be declared on your income tax return. The income tax rate for capital gains varies depending on the total value of the gains and can be as high as 15%.
Small Gains Exemption: According to RFB Normative Instruction No. 1,888/2019, there is an exemption for capital gains of up to R$35,000.00 in a single month. In other words, if the total capital gains in a month are less than R$35,000.00, the taxpayer is exempt from paying tax on these gains.
Day-Trade: For day-trade operations (buying and selling cryptocurrencies on the same day), capital gains are taxed at a rate of 20%, regardless of the total value of the gains.
Other Operations: Other operations with cryptocurrencies, such as exchanges for other cryptocurrencies, receiving income (interest, staking, etc.) and donations, may also be subject to taxation, depending on the specific circumstances.
It is important to note that this information is just general guidelines and may vary depending on each taxpayer's individual situation. It is recommended that you consult an accountant or professional specializing in cryptocurrency taxation for specific and accurate guidance regarding your tax situation.
