Exciting News: Brazil Implements 15% Crypto Tax On Overseas Exchanges From 2024 Onward!

The President of Brazil has officially approved a new legal framework for citizens of the country, based on crypto income earned from foreign exchanges.

According to the Official Gazette of the Union (DOU) on December 13, 2023, Brazilian President Luis Inácio Lula da Silva has officially approved a law that imposes taxes of up to 15% on cryptocurrency assets held by Brazilian citizens abroad.

The bill was previously approved by both the Senate and the Chamber of Deputies at the end of the previous month. The new regulatory framework will come into effect on January 1, 2024.

The new tax regulation does not only apply to cryptocurrencies, but also to profits and dividends that Brazilian taxpayers earn from foreign investment funds, platforms, real estate, or trusts. The Brazilian government aims to collect around 20 billion reais (equivalent to $4 billion) in taxes in 2024.

Although the 15% tax regulation applies to foreign sources of income, taxation only occurs if the interest is “credited” to an account in Brazil. In other words, if this money is not transferred to an account in Brazil, it will not be taxed.

Brazil ranks among the top 9 countries globally adopting crypto and is considered a primary digital currency market in Latin America. Since December 2022, Brazil passed regulations accepting crypto as a legitimate payment method domestically. Recently, the country’s largest bank also launched crypto trading services and citizen identification via blockchain technology.

Preceding Brazil, both Turkey and Thailand proposed including crypto in their 2024 tax frameworks. Meanwhile, the US tax authority aims to tax mining, staking, brokerage, DeFi, and NFT activities.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.