Unlock the Secrets of Ethical Hacking!
Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!
Enroll now and gain industry-standard knowledge: Enroll Now!
Brazil has ended its tax exemption for small-scale crypto profits, introducing a 17.5% flat rate on all capital gains from digital assets. The new rule was announced under Provisional Measure 1303 as part of the government’s push to raise revenue through financial market taxation.
Until now, Brazilian residents who sold up to 35,000 Brazilian reals (roughly $6,300) in crypto assets per month were exempt from income tax. Gains beyond that were taxed progressively, starting at 15% and reaching as high as 22.5% for volumes above 30 million Brazilian reals.
The new flat rate, which went into effect starting June 12, removes all exemptions and applies equally to all investors regardless of the size of their transactions, according to a report by local news outlet Portal do Bitcoin.
While smaller investors will now face higher tax burdens, high-net-worth individuals could end up paying less. Under the previous system, large trades, those exceeding 5 million Brazilian reals, were taxed between 17.5% and 22.5%. With a uniform 17.5% rate now in effect, many large investors will see their effective tax rate drop.
Related: Circle gains 10% on deals with Brazil’s Matera, Altman’s World
Brazil targets self-custody and offshore crypto
The provisional measure also expands the tax base. Crypto assets held in self-custody wallets and foreign crypto holdings are now included in the tax regime.
Per the report, taxation will be assessed quarterly, with investors allowed to offset losses from the previous five quarters. However, from 2026 onward, the window for loss deduction will be tightened.
The overhaul extends beyond crypto. Fixed income instruments, once exempt from income tax, such as Agribusiness and Real Estate Credit Letters (LCAs and LCIs), as well as Real Estate and Agribusiness Receivables Certificates (CRIs and CRAs), will now incur a 5% tax on profits.
Meanwhile, taxation on betting revenue has increased from 12% to 18%.
The finance ministry introduced these changes following backlash over an earlier attempt to hike the Financial Transaction Tax (IOF). That proposal was shelved after facing stiff opposition from both the market and Congress.
Related: Brazil’s data watchdog upholds ban on World crypto payments
Brazil considers allowing Bitcoin salary payments
In March, Brazilian lawmakers put forward a proposal that would permit employers to pay workers partially in cryptocurrencies like Bitcoin (BTC). Under the proposed rules, crypto payments cannot exceed 50% of an employee’s salary.
Full crypto payments would only be allowed for foreign workers or contractors and only under specific conditions laid out by Brazil’s central bank. The bill prohibits paying wages entirely in digital assets for standard employees.
The legislation would also permit independent contractors to receive full payment in crypto if agreed upon contractually. All crypto payouts must use official exchange rates from Central Bank-authorized institutions.
Magazine: Bitcoin $119K price if oil holds? SharpLink buys $463M ETH: Hodler’s Digest, June 8 – 14
Unlock the Secrets of Ethical Hacking!
Ready to dive into the world of offensive security? This course gives you the Black Hat hacker’s perspective, teaching you attack techniques to defend against malicious activity. Learn to hack Android and Windows systems, create undetectable malware and ransomware, and even master spoofing techniques. Start your first hack in just one hour!
Enroll now and gain industry-standard knowledge: Enroll Now!
0 Comments