Brazil finishes breaking the encryption tax, and imposes a fixed rate of 17.5 % star-news.press/wp

Brazil ended the tax exemption for small encryption profits, as it provided a fixed rate of 17.5 % on all capital gains of digital assets. The new rule was announced under the temporary measure of 1303 as part of the government’s batch to increase revenues by imposing taxes on the financial market.

So far, the Brazilian population who sold up to 35,000 Brazil (about $ 6,300) has been in a monthly encryption assets exempt from income tax. The tax on gains that exceed this is gradually imposed, starting from 15 % and up to 22.5 % for volumes exceeding 30 million Brazilian.

The new flat rate, which entered into force starting from June 12, removes all exemptions and applies evenly to all investors regardless of the size of their transactions, According to To a report issued by the local Outlet Do Bitcoin portal.

While smaller investors will now face higher tax burdens, it may end with high -value personnel to a lower payment. Under the previous system, taxes were imposed on large deals, which exceed 5 million Brazilian, between 17.5 % and 22.5 %. With a unified average of 17.5 % is now valid, many big investors will see a decrease in the actual tax rate.

Related to: The circle earns 10 % on deals with Matera’s Brazil, Altman World

Brazil targets the self -body and encryption abroad

The temporary measure expands the tax base. The coronation assets preserved are now inserted into self -friction governor and foreign encryption rights in the tax system.

According to the report, taxes will be evaluated every three months, while allowing investors to compensate for losses from the previous five quarters. However, from 2026 onwards, the suspension of the loss discount will be tightened.

Reform extends beyond encryption. Fixed income tools, as soon as they are exempt from income tax, such as agricultural business and real estate credit messages (LCAS and LCIS), as well as the next real estate and business certificates (CRIS and CRA) certificates by 5 % on profits.

Meanwhile, taxes on betting revenues increased from 12 % to 18 %.

The Ministry of Finance provided these changes after the reverse reaction due to a previous attempt to raise the financial transaction tax (IF). This proposal was suspended after confronting a severe opposition from both the market and the Congress.

Related to: The Brazil Data Observer supports the ban on global encryption payments

Brazil is studying payments bitcoin salaries

In March, the Brazilian lawmakers made a proposal that allows employers partially to pay workers in cryptocurrencies such as Bitcoin (BTC). Under the proposed rules, encryption payments cannot exceed 50 % of the employee’s salary.

Full encryption payments will only be allowed for foreign workers or contractors and in light of specific circumstances only by the Brazilian Central Bank. The draft law prohibits the payment of wages completely in the digital assets of standard employees.

Legislation will also allow independent contractors to receive full payment of encryption if it is agreed. All encryption payments should use official exchange rates from the institutions allocated to the Central Bank.

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