Brazil targets crypto investors with new tax proposal
Share this article
According to local news outlet Folha de São Paulo, a new bill introduced by the Brazilian administration will impose a 22.5% rate on residents of tax havens. Brazil's Finance Minister Fernando Haddad announced the law, which aims to tackle tax evasion by closing loopholes that benefit those living in tax havens.
The changes, which are expected to be neutral in terms of revenue impact, will not change the current tax rates but will ensure transparency by clarifying the meaning of tax positions.
In the year The bill, passed by Congress in 2025, would retain the 15% tax rate on foreign investments. These jurisdictions have low or no income tax and lack of transparency.
The amendment regulates taxation of crypto assets by applying a rate of up to 22.5% to align with financial investment regulations. In addition, the government plans to simplify tax calculations for stock market investors and close loopholes in investment fund taxation.
The first tax aimed at crypto in Brazil
In the year In 2019, the Brazilian IRS introduced ‘Normative Instruction 1888', which creates regulations for crypto investors to report their trading activities in foreign currencies. However, it did not create new tax laws, capital gains tax of 15% is applied to investors.
This new bill could create the first crypto-specific tax in Brazil, which is known for its positive stance on crypto by regulators. Brazil's central bank is preparing to launch the pilot phase of Drex, a blockchain infrastructure designed to streamline the country's financial markets. Unlike other Central Bank Digital Currencies (CBCC) projects, Drex is heavily skewed toward tokenizing real-world assets.
Moreover, the Brazilian Securities and Exchange Commission encourages the development of RWA tokenization, as well as the presence of crypto in the currencies of many markets sold in the country.
As a result, Brazil has become the seventh largest country in crypto adoption, according to Chainalysis' “2023 Geography of Cryptocurrency Report.” However, this new tax burden may put some weight on the shoulders of investors.
Share this article
The information contained or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of information obtained through this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
Crypto Briefing may include articles with AI-generated content created by Crypto Briefing's own proprietary AI platform. We use AI as a tool to deliver fast, useful and actionable information without losing the insight – and control – of experienced crypto natives. All AI-added content is carefully reviewed, for accuracy, by our editors and writers, and we always draw from multiple primary and secondary sources to create our stories and articles.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
