Brazil recently amended its cryptocurrency tax regime, marking a turning point in the regulation of this sector. Here are the key points of this reform:
đ Main measures:
1. End of tax exemption:
- Before this reform, monthly cryptocurrency earnings below ~$63,000 (BRL 35,000) were tax-exempt.
- From now on, all crypto gains (even below this threshold) will be taxable.
2. Single rate of 17.5%:
- A fixed tax of 17.5% will be applied to income from cryptocurrencies.
- This rate is lower than that applied to other financial investments in Brazil (up to 27.5%).
3. Government objective:
- Fight against tax evasion and regulate a growing crypto market.
- Harmonize crypto taxation with that of other assets (stocks, bonds, etc.).
đĄ Consequences for investors:
- Impact on small investors: Brazilians who made modest gains (less than $63,000/month) will now have to pay tax.
- Advantage for large investors: The rate of 17.5% is advantageous compared to the higher brackets of classic IR.
- Enhanced reporting requirements: Exchange platforms will likely have to report transactions to tax authorities.
đ International context:
Brazil joins other countries (such as the United States and Germany) in taxing cryptocurrencies, but with a relatively low rate compared to some (e.g., 30% in France on crypto capital gains).
This measure could influence other emerging economies to follow a similar approach.
đ To be continued:
- Technical implementation (how will the gains be calculated?).
- The impact on the adoption of cryptos in Brazil (a country very active in this sector).