Brazil Ends Crypto Tax Exemptions, Will Now Charge 17.5% Capital Gains Tax

Brazil has issued a radical revision of its cryptographic tax policy. The country concluded its long -standing tax exemptions for small -scale cryptocurrency investors. Brazil will now impose a 17.5% flat survivors tax on all profits of digital activities transactions.

Starting from 12 June 2025, all cryptographic transactions – regardless of the value or volume – will be subjected to a tax authorcare of 17.5%.

Apparently, Brazil’s new tax policy is part of the provisional measure 1303, a government initiative to increase revenues from financial markets.

According to reports in the local media, “the Brazilian government will eliminate the exemption on profits up to $ 35,000 obtained with cryptocurrencies and will set the tax at 17.5%, to be paid in the income tax. The new rule is in a new provisional measure in which the government establishes increases in tax investments to increase revenues”.

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Brazil ends the monthly exemption

The previous exemption that allowed the Brazilians to sell up to 35,000 reais (about $ 6,300) per month that exempted.

However, now every encryption gain is taxable. “The 17.5% rate will be general and will influence almost all financial investments. The fixed income securities, which were previously exempt from income tax, will now have a rate of 5% on profits, “said local media.

In particular, the tax measures were taken after the government has attempted to increase the collection of the tax on financial transactions (IOF).

Interestingly, the country is also advancing many other encryption legislative efforts. One of these bills, introduced in March of this year, would allow employees to receive part of their wages in cryptocurrency.

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Keyway keyway

  • The previous exemption that allowed the Brazilians to sell up to 35,000 reais (about $ 6,300) per month that exempted. Now, every encryption gain is taxable.

  • The new tax applies to the activities held in self-custody portfolios and digital activities preserved abroad, closing the gaps and expanding the tax base.

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