Rules must be validated by the National Congress within 120 days or lose validity.
New measure comes into immediate effect (Photo: Fabio Rodrigues-Pozzebom/Agência Brasil)
President Luis Inácio Lula da Silva published on Wednesday night (11) the new Provisional Measure 1.303/2025 to specify the new tax regime for investments in Brazil, even ending the tax exemption for cryptocurrencies up to R$ 35 thousand.
"Provides for the taxation of financial applications and virtual assets in the country and gives other provisions," says the heading of the MP that comes into immediate effect and has the force of law.
Published in an extra section of the Official Gazette of the Union, the measure is co-signed with Finance Minister Fernando Haddad. Thus, the new text emerges as a response to the recent controversies regarding the increase of IOF in Brazil, which displeased the National Congress.
Lula's new tax ends the exemption of up to R$ 35 thousand and now charges 17.5% on profits, which must be paid quarterly, understand.
The new MP makes it clear that it establishes a new tax collection for all virtual assets mentioned by Law 14.478/2022, including cryptocurrencies and crypto assets.
It then clarifies that now individual and corporate investors must pay a tax of 17.5% on their net profits, already deducted the fees charged by platforms.
"Art. 31. In the case of individuals residing in the country and legal entities that are exempt or opting for Simples Nacional, the income, including net gains, referred to in art. 30 are subject to income tax at the rate of 17.5% (seventeen and five tenths percent)," says a passage of the MP consulted by the report.
Cryptocurrency specialist, accountant Ana Paula Rabello from Declarando Bitcoin made it clear that there will be changes in the current tax regime involving the crypto market. Some measures will only take effect in 2026, according to her.
Accountant Ana Paula summarized the main points of the new MP that taxes cryptocurrencies in Brazil (Reproduction/Instagram)
For individuals, the taxation of cryptocurrencies followed the rules of capital gains on assets and rights, with progressive rates ranging from 15% (for gains up to R$ 5 million) to 22.5%. The exemption for monthly sales below R$ 35,000.00 was also an important point, with the MP indicating its immediate change.
Brazilian bitcoin investors will also be able to deduct from the tax amounts of losses in their operations in the market.
The new rules apply even when virtual assets are under the custody of the taxpayer themselves, without intermediaries.
National Congress must analyze new MP within a maximum of 120 days.
A Provisional Measure usually indicates an urgent change detected by the president of Brazil. However, to effectively come into force, it must become a law, undergoing analysis by the National Congress.
The first step now is the possible creation of a mixed commission of senators and federal deputies to analyze the admissibility of the text. If approved, it will go to the Federal Senate for approval and then to the Chamber of Deputies.
The deadline is 60 days, which can be extended for another 60 days. But if the proposal is not analyzed within 45 days, it halts the entire agenda of the National Congress until its approval, a factor that reinforces the government's urgency in approving the new rules for investments in Brazil and abroad.
The text remains available for public consultation in the Official Gazette of the Union in an extra session this Wednesday.