The Senate of Brazil has ratified new income tax regulations, imposing a 15% tax on earnings from crypto held on foreign exchanges.
This decision, effective from January 1, 2024, signifies a pivotal shift in Brazil’s approach to crypto taxation. This aligns with global trends towards regulating digital assets.
Crypto Tax Laws in Brazil to Get a Makeover
The bill, which has passed through both the Brazilian Senate and the Chamber of Deputies, awaits President Luiz Inácio Lula da Silva’s endorsement. This legislative change, spearheaded by his administration, reflects Brazil’s growing recognition of the economic significance of cryptocurrencies.
Brazilians earning over $1,200 (6,000 Brazilian reals) annually from foreign-based crypto exchanges will be impacted. Notably, this tax rate is consistent with that applied to domestically held funds. However, a transitional tax rate of 8% is set for earnings accessed before December 31, 2023. This will escalate to the full 15% thereafter.
This legislation extends its reach beyond individual investors, affecting “exclusive funds” (investment funds with a single shareholder) and foreign companies active in Brazil’s financial sector. With a revenue target of $4 billion (20.3 billion Brazilian reals) set for 2024, this move underscores the government’s commitment to leveraging the crypto market for economic advancement.
Senator Rogério Marinho expressed criticism of the new tax, attributing it to the government’s mismanagement. Despite this, the Brazilian central bank has ramped up regulation of virtual asset service providers. This echoes the Comissão de Valores Mobiliários’ oversight of crypto-based securities.
This regulatory tightening is in response to the escalating popularity of cryptocurrencies and concerns over potential tax evasion.
Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide
Other Nations Beefing Up Tax Rules
Comparatively, Thailand, previously lauded as crypto-friendly, has also announced plans to tax foreign income from crypto trading. This initiative forms part of the country’s broader economic stimulus strategy, including a nationwide airdrop.
The Thai Revenue Department’s new policy targets residents trading in foreign stock markets and cryptocurrency traders. It primarily mandates personal income tax on overseas earnings.
In September, a Finance Ministry source told the Bangkok Post:
“The principle of tax is that you must pay tax on income you earn from abroad no matter how you earn it and regardless of the tax year in which the money is earned.”
As nations like Brazil and Thailand navigate the complexities of digital assets, these tax policies reflect a growing global consensus on the need for regulation in the cryptocurrency sector.
This trend acknowledges the increasing integration of cryptocurrencies into mainstream financial systems, necessitating a balanced approach that safeguards investor interests while ensuring fiscal responsibility.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.
Kommentar hinterlassen