News Report
December 15, 2023

Brazil President Approves Legislation for Overseas Crypto Taxation

In Brief

Brazil’s new law taxing overseas crypto assets, effective from 2024, represents a comprehensive approach to crypto regulation.

Brazil Enacts Law Taxing Overseas Crypto Assets

Brazilian President Luis Inácio Lula da Silva officially signed a new law that will tax crypto assets held overseas by Brazilian citizens.

Set to come into effect from January 1, 2024, this legislation marks a significant step in the country’s approach to cryptocurrency regulation.

Under the new law, Brazilian citizens will pay up to 15% tax on profits from cryptocurrencies held abroad. However, those who start their tax payments this year will benefit from a reduced tax rate of 8% on all income generated up to 2023, payable in installments starting in December 2023. From next year, the tax rate will increase to 15%, but overseas earnings below $1,200 will remain exempt.

The law’s reach extends beyond cryptocurrencies, allowing the government to tax profits and dividends from various investment funds, platforms, real estate, or trusts. This broad approach aims to generate up to $4 billion in new taxes for the Brazilian government in 2024.

Implications for Brazil Crypto Companies

The legislation’s impact is not limited to individual holders but also applies to exclusive funds, which are investment funds with a single shareholder, and foreign companies active in the Brazilian financial market. This widens the law’s effect within the financial sector.

The enactment of this tax law is part of Brazil’s broader move toward enhanced cryptocurrency regulations. Earlier, Roberto Campos Neto, the Brazilian central bank governor, indicated this trend by announcing plans in September to intensify cryptocurrency oversight.

This development in Brazil reflects a growing global trend of governments seeking to regulate and tax cryptocurrency assets, balancing the need for innovation in digital finance with the requirements of fiscal policy and market stability.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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