In a landmark decision, Brazil’s Senate has ratified a bill mandating a 15% tax on income from cryptocurrencies held in offshore exchanges. This groundbreaking legislation, approved by the Chamber of Deputies and the Economic Affairs Committee, is poised for President Luiz Inácio Lula da Silva’s endorsement. The tax is applicable to assets over R$6,000 ($1,200) and categorizes crypto assets and wallets on foreign platforms as financial investments, aligning them with Brazil’s Federal Revenue regulations.
The bill also impacts exclusive funds and offshore applications, with the tax rule set to take effect from January 1, 2024. Prior to this date, income on assets will face an 8% tax rate. This move is expected to significantly contribute to Brazil’s economy, with a projection to generate R$20.3 billion ($4.1 billion) in 2024 and R$54 billion ($11 billion) by 2026. Despite its potential benefits, the bill faced some opposition in the Senate over concerns of employing outdated taxation methods. This tax reform follows a recent empowerment of Brazil’s central bank to supervise the local crypto sector, marking a substantial shift in the country’s digital asset landscape .
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
