Brazil has scrapped a long-term tax exemption of cryptocurrency gains, with a new preliminary measure (MP 1303), which imposes a tax of 17.5% on all crypto surplus for individuals.
Previously, persons sold up to R $ 35,000 (about $ 6,300) of crypto per day. Month, exempt from taxation. Before the change, winnings were gradually taxed and reached as high as 22.5% for quantities over $ 5.4 million.
The new rule replaces this system with a flat tax, which means that smaller investors will have higher tax burdens, while large proprietors may see their bills shrink, local news output portal do Bitcoin reports.
The tax applies regardless of where the assets are held, including in overseas exchanges or self -defense wallets. Losses can be offset, but only within a rolling window of five quarter, a rule that becomes stricter that starts in 2026.
The government says the audit is aimed at increasing tax revenue after returning a proposed increase in IOF -financial transaction tax that had drawn industry and congregation criticism.
Alongside crypto, the new measure affects fixed-income investments and online betting, with the former now incuring a fixed 5% tax on earnings, and the latter, who sees the tax on operator income increases from 12% to 18%.
