The Brazilian Federal Revenue Service has opened a new public consultation on the topic of cryptocurrencies, seeking to create a new form of declaration called “DeCripto”.
The new draft of the Normative Instruction that will establish the Declaration of Cryptoassets (DeCripto) is based on Normative Instruction 1,888/2019.
With the new public consultation, the RFB intends to expand its knowledge about the new types of crypto assets. In addition, it intends to understand more about market operations.
Understand the new public consultation of the Brazilian Federal Revenue Service on cryptocurrencies in search of creating DeCripto
The new document with 21 pages on the RFB website has been available since last Thursday (7), with the consultation expected to last until December 6, 2024.
According to information released by the RFB, “DeCripto demands the need for information on new types of crypto assets and new operations.”
The new draft Normative Instruction also incorporates rules and concepts from the cryptocurrency exchange model developed by the OECD. Thus, there are rules that assess the concepts of crypto assets, in addition to the service provider, and must also contain an assessment of due diligence procedures.
In a note, the IRS stated that “DeCripto will capture information on the transfer of crypto assets from abroad to Brazil (vice versa), crypto assets referenced to assets, transmission (deposit) of crypto assets to a decentralized finance platform and fractionation of NFT (non-fungible token)”.
Finally, “the Federal Revenue Service is committed to continually reviewing and improving its regulatory acts in order to prioritize legal certainty, guarantee tax justice and protect the tax base in an ongoing effort to strengthen tax transparency through the international exchange of information. To this end, it seeks constructive dialogue and relies on the participation of interested parties in this consultation process.”
Repeal IN 1.888/2019
With the new Normative Instruction, with tax auditors Ilka Marinho Barros Pugsley and Rubens Moura de Carvalho in charge, the RFB wants to revoke IN 1.888/2019. It is worth remembering that this is the government's first action in the cryptocurrency market.
The Brazilian Federal Revenue Service has even shown attention to the cryptocurrency market, and last October it once again disclosed the operations of Brazilians in national brokerages. With the new regulation, the data should also seek data on international transactions, and increase tax oversight of Brazilians who operate cryptocurrencies.
