Brazil Sets Flat 17.5% Tax on Crypto Profits, Ending Exemption for Smaller Investors

Brazil has scrapped a long-standing taxation exemption connected cryptocurrency gains, with a caller provisional measurement (MP 1303), imposing a 17.5% taxation connected each crypto profits for individuals.

Previously, individuals selling up to R$35,000 (around $6,300) worthy of crypto per period were exempt from taxation. Before the change, gains supra that were taxed progressively, reaching arsenic precocious arsenic 22.5% for volumes implicit $5.4 million.

The caller regularisation replaces this strategy with a level tax, meaning smaller investors volition look higher taxation burdens portion ample holders whitethorn spot their bills shrink, section quality outlet Portal bash Bitcoin reports.

The taxation volition use careless of wherever the assets are held, including successful overseas exchanges oregon self-custodial wallets. Losses tin beryllium offset, but lone wrong a rolling five-quarter window, a regularisation that volition go stricter starting successful 2026.

The authorities says the overhaul is aimed astatine boosting taxation gross aft walking backmost a projected hike to the IOF fiscal transaction tax, which had drawn manufacture and legislature criticism.

Alongside crypto, the caller measurement affects fixed-income investments and online betting, with the erstwhile present incurring a fixed 5% taxation connected net and the second seeing taxes connected relation revenues emergence from 12% to 18%.