Brazil Approves Crypto Tax Law: Those Who Make Profits Have to Pay Taxes

The Brazilian government has imposed taxes on its citizens’ crypto assets held abroad and all income derived, including various financial instruments.

Brazilian President Luis Inácio Lula da Silva has signed a new law imposing taxes on Brazilian citizens’ crypto assets held abroad. According to the new regulations, Brazilians will now be obligated to pay up to 15% of their profits from overseas crypto holdings to the government.

Not Limited to Cryptocurrency

Furthermore, the scope of this decision taken by the Brazilian government is not limited to cryptocurrencies alone; it will also apply to the income derived from various financial instruments held by Brazilian taxpayers abroad. This includes various asset classes such as investment funds, platforms, real estate, and more.

It was also announced that special advantages would be offered to those starting to pay taxes in 2023. Under these advantages, it will be possible to pay an 8% tax on all income earned until 2024 in installments.

Protection for Small Investors

On the other hand, another noteworthy detail in the regulation is the exemption of foreign gains up to 6,000 Brazilian Reais (approximately $1,200) to protect small investors.

Source: Cointelegraph

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