How can Bitcoin traders pay less taxes on exchanges abroad?
For traders, investing in crypto assets abroad is likely to be more beneficial, as it allows losses to be offset and taxation only occurs once a year.
With the approval of Law No. 14,754, which changes taxation for financial investments abroad, the question arises as to where it is most advantageous to invest in relation to taxes.
But before answering this question, we need to remember that the classification of virtual assets and digital wallets depends on Federal Revenue regulations.
Non-foreign x national tax rebates
Until 2023, there was no distinction in the calculation of taxes when using national and foreign brokers, following a single rule. This rule includes an exemption for small-value goods. Therefore, in the case of capital gains from cryptoactives, investors are exempt from taxes in the months in which the total sold does not exceed R$35,000.
This limit of R$35,000 on disposals works like a radar. If the total exceeds this amount, it becomes necessary to pay tax on profitable operations. On the other hand, if the value is not exceeded, the operations remain exempt.
With regard to taxation of gains, they are subject to a progressive rate of 15% to 22.5%. Most investors are taxed at 15%, as it covers gains of up to 5 million. Tax calculation is done monthly, and payment must be made within the month following the month in which the operations carried out.
A very unfavorable aspect is the impossibility of compensating losses, not even within the same month, due to the lack of legal provision for this.
New rules from 2024
With the approval of the law, we will have new rules for cryptoassets that are considered financial investments abroad.
The new rules boil down to the end of the R$35,000 exemption on disposals, a definitive rate of 15%, the possibility of offsetting losses even with assets of other natures, as long as they are also financial investments abroad, and the assessment of annual tax.
As we can see, with the changes, the negative aspect is the end of the R$35,000 exemption. Many confuse this amount with withdrawal or just selling for BRL. In this scenario, the exemption would really be interesting. However, it applies to disposals, not withdrawals.
A trader who carries out a few operations throughout the month would probably exceed this limit. Previously, the biggest obstacle was the impossibility of offsetting losses. For example, if in a given month you made 20 disposals of R$2,000 each, 19 of which were losses, you would still pay tax on the only profitable transaction because it exceeded the limit of R$35,000.
On the other hand, with a foreign brokerage, you would not be subject to this tax and could offset any losses with future profits. Furthermore, if a profit was made, the tax payment would only be made in the following year's declaration, and not until the end of the following month.
So where do I pay the least tax?
Considering the established rules, we realize that the decision of where to pay less tax depends on the characteristics of your operations. For traders, investing in crypto assets abroad is likely to be more beneficial, as it allows losses to be offset and taxation only occurs once a year.
As for the holder, the choice varies depending on the amount invested. If you are a small investor, it is possible to stay within the limit of R$35,000 and, in this way, be exempt from taxes.
On the other hand, if you have more significant capital, investing abroad may be more attractive, due to the annual tax payment and the fixed rate of 15%.
It is important to highlight that many aspects still depend on the regulation of the Brazilian Federal Revenue Service (RFB) for this new law. Thus, new interpretations may emerge.
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