Brazil is about to introduce a tax on profits from cryptocurrency stored on foreign exchanges. The new income tax rules have been approved by the Senate and are awaiting the president's signature. According to the new law, foreign exchange transactions and investment funds with one shareholder are subject to taxation if they generate income over $1,200.
Brazil's Federal Council has approved a previously submitted bill introducing a 15% tax on capital gains on crypto assets on offshore exchanges.
The new rules were previously approved by the Chamber of Deputies. Thus, the bill received the support of the National Congress and now the document must be signed by Brazilian President Luiz Inacio Lula da Silva.
The new tax rules will affect citizens who receive income from foreign exchange transactions, as well as from investment funds with one shareholder, more than $1,200.
Receipts ranging from 6,000 reais ($1,200) to 50,000 reais ($10,000) are subject to a 15% tax. If the amount exceeds the upper threshold, the interest rate increases to 22.5%.
Subject to the document being signed by the president, the new rules will come into force on January 1, 2024.
Brazil passed a law to regulate cryptocurrencies in 2022. This allowed firms to register in the country and obtain a license to operate. The law also enabled authorities to inspect cryptocurrency companies for compliance with operating rules.
In June 2023, underwent . The company was accused of using financial pyramids.
Let us recall that we previously wrote that Brazil selected participants in the closed CBDC pilot. The country's Central Bank has formed a list of 14 companies that will participate in testing the digital real.
