Brazil to raise tax on cryptocurrency income to 15% starting 2024

In question is income earned on foreign platforms

30.11.2023 - 11:10

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What’s new? The Brazilian Congress has approved an increase in the tax rate on income earned on foreign cryptocurrency exchanges. So, starting January 1, 2024, traders will no longer have to pay 8%, but 15% if their income exceeds 6000 Brazilian reals ($1200). The bill must also be signed by President Luiz Inácio Lula da Silva to take effect.

Cointelegraph’s material

What else is known? Back in September, the governor of the Central Bank, Roberto Campos Neto announced the tightening of regulation of cryptocurrencies due to their growing popularity. At the time, he noted that digital assets are used for tax evasion. The rate increase is expected to bring the budget 20,3 billion Brazilian reals ($4 billion) for next year alone.

The amendments will apply not only to individuals but also to the so-called exclusive funds with a single shareholder, as well as foreign companies.

Earlier this month, OKX, one of the largest centralized exchanges, began operating in the country.

In October, Brazil’s securities regulator allowed the possibility of the launch of a second sandbox for asset tokenization following a successful pilot test.

It also became known that residents of Spain until the end of March next year must declare their cryptocurrency income from foreign exchanges, if the amount exceeds 50 000 EUR.

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