Fabrício Lima

Hey guys, check out the New Rules for Declaring Cryptocurrencies on Income Tax Returns. What do you think about this?

Despite the lack of specific regulations, the Court of Justice of Rio Grande do Sul (TJRS) has already recognized the possibility of seizing cryptocurrencies in legal proceedings, considering them financial investments.

The Federal Revenue Service requires that cryptocurrencies be declared on Income Tax Returns by individuals and legal entities, if the acquisition value of each type of crypto asset is equal to or greater than R$5,000.00. In 2023, more than R$1 billion in crypto assets were not declared. Those who failed to declare them must regularize the situation to avoid fines and problems with the IRS.

The declaration itself does not generate tax, but the profit on the sale (capital gain) does, if the total sold in the month exceeds R$35,000.00 in national brokerages. In this case, the tax varies from 15% to 22.5% on the profit, depending on the value of the gain, and must be paid by the last business day of the month following the sale, through the GCAP system and issuing a DARF. Failure to pay or declare may result in fines and interest. For sales through foreign brokerages, the rate is fixed at 15%, without the R$35,000 exemption.

Example: If someone bought R$5,000 in Bitcoin and sold it for R$50,000, the tax will be 15% on the R$45,000 profit, totaling R$6,750 in tax. Simply owning the cryptocurrency does not generate tax, only selling it at a profit.

One strategy used to reduce the tax is to divide the sales into different months, taking advantage of the R$35,000 monthly exemption, but this can trigger considerable losses due to market volatility.

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BRs: be careful when trading now, Google has indicated the wrong dollar value again, this seems to affect quotes on Binance as well