Skip to main content

Brazil's Federal Revenue Requires Citizens To Pay Taxes On Crypto Trades

 

The Federal Revenue of Brazil wants investors to pay taxes on cryptocurrency trading profits, even if there is no exchange for Brazil's national currency.

Forexchief

Brazil's Federal Reserve (RFB) has declared that Brazilian investors in the crypto-asset market must pay income tax on transactions that involve the like-kind exchange of cryptocurrencies; for example, Bitcoin (BTC) for Ethereum (ETH).

The RFB's declaration was published in the Diário Oficial da União and was the result of a consultation made by a citizen of the country with the regulator. 

At the end of last year, the group issued an opinion in which it claimed that trading between cryptocurrency pairs is taxable even if there is no conversion to the real (Brazil's national currency).


Although it does not specify what can be understood as "profit," since in the exchange of one crypto asset for another there is no capital gain in fiat currency, it points out that there is, even so, the obligation to pay taxes on the eventual profit:

"The capital gain calculated on the sale of cryptocurrencies, when one is directly used in the acquisition of another, even if the acquisition cryptocurrency is not previously converted into reais or another fiat currency, is taxed by the individual's income tax."

However, it should be noted that not all crypto investors need to declare their trades, as the regulator established that only investors who trade more than BRL 35,000 (roughly $7263.67) in cryptocurrencies should pay income tax.
 


"Capital gains earned on the sale of cryptocurrencies are exempt from income tax if the total value of the sales in a month, of all kinds of crypto assets or virtual currencies, regardless of their name, is equal to or less than BRL 35,000, 00 (thirty-five thousand reais)," declared the RFB.

Federal deputy Kim Kataguiri (Podemos, or the National Labor Party) previously stated that he considers the Federal Revenue's proposal to be illegal and asked the National Congress to decree the immediate suspension of the determination.

According to Kataguiri, the regulation on the calculation and payment of IRPF (Individual Income Tax) establishes that there will only be capital gain in exchanges when currency is involved (articles 134 and 136 of decrees 9580 and 2018) — which is not the case when trading like-kind crypto assets.


"In the exchange between crypto assets, there is no exchange involving currency; one crypto asset is exchanged for another, therefore, there is no equity increase," declared Kataguiri.

The parliamentarian argued that pursuant to article 110 of the Tax Code, the tax law cannot change the definition of private law institutes, and therefore the Federal Revenue does not have the power to change an understanding of the Tax Code.

"If the Union wants to tax the exchange of crypto-assets, legal innovation will be necessary and, even in this case, doubts may be raised about the constitutionality of the new law.

enlightenedExposed In 2022enlightened
What is the most accurate trading indicator?


What we have is a completely illegal interpretation made by the tax authorities, which clearly exceeds the power to regulate," said Kataguiri.

Brazilian investors in the cryptocurrency market have been required to declare their crypto assets to the regulator since 2016. In 2019, the Federal Revenue Service of the country published Normative Instruction 1888.

Which determines that all national exchanges are required to report all cryptocurrency transactions between users to the regulator on a monthly basis. (Cointelegraph)
 

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

The partnership between QuizTalk and Meta-Airline is an NFT strategic alliance.

The alliance's primary objective is to expand the breadth of NFT markets both domestically and internationally by ensuring that both organizations' platforms feature NFT content. SK Telecom's Ifland metaverse service recently sponsored a quiz show by QuizTalk Co., Ltd., which has expanded its presence in the NS home shopping and live commerce industry. QTCON has now been made available on the three largest domestic exchanges, Bithumb, Upbit, and Coinone. It also debuted on the international cryptocurrency exchange Gate.io. About 780 million answers, 1.32 million quizzes, and 700,000 downloads can be found on QuizTalk's "QUIZTOK" platform. You can earn points for answering a quiz question on Quiz Talk, and the person who posed the question can earn points as well. To make it easier for one's followers to access quizzes, a quiz curator has been implemented. If a company wants to promote itself on QuizTalk, it must first acquire and use tokens. Your MAL-SCAN ...
Post a Comment
Read more

Investors weigh the outlooks for rates and the economy as the dollar edges up.

The Federal Reserve, the European Central Bank, and the Bank of England will all be making significant policy decisions next week. Investors and traders want to know if inflation has peaked, which would give policymakers room to raise interest rates more gradually in the coming months. The Fed's policy meeting on December 14 is also important because it will come one day before the next monthly report on consumer inflation in the United States is due on December 15. "Until we have those central bank meetings and one significant monthly U.S. data release, not a great deal is occurring," RBC currency analyst Adam Cole said. "U.S. CPI is the one data release that seems to really matter for broader dollar movement at the moment." When compared to other major currencies, the dollar held constant. The last known value of the euro in US dollars was $1.0507, while the pound dropped 0.3% to $1.2171. The Japanese currency, which is quite sensitive to changes in the yield ...
Post a Comment
Read more

North Korean hackers are using almost 500 phishing domains to steal NFTs.

The hackers made fake websites that looked like NFT projects, NFT marketplaces, and even a DeFi platform. Hackers with ties to North Korea's Lazarus Group are said to be behind a massive phishing campaign that targets investors in nonfungible tokens (NFTs). The campaign uses nearly 500 phishing domains to trick people into giving away their personal information. SlowMist, a blockchain security company, released a report on December 24 that showed the methods that North Korean Advanced Persistent Threat (APT) groups have used to trick NFT investors out of their NFTs. These methods include putting up fake websites that look like different platforms and projects related to NFTs. Some of these fake websites include one that pretends to be a World Cup project and others that try to look like popular NFT marketplaces like OpenSea, X2Y2, and Rarible. SlowMist said that one of the methods was for these fake websites to offer "malicious mints," which trick the victims into thinkin...
Post a Comment
Read more