Brazil’s Senate has approved new income tax laws, introducing a 15% tax on profits from digital coins held in overseas cryptocurrency exchanges. Effective from 1 January 2024, the updated rules underscore the country’s approach to taxing digital assets.
The Chamber of Deputies has passed the bill. Meanwhile, it awaits the president’s endorsement to become a law. Meanwhile, the 15% tax will apply to investors who earn more than 6,000 Brazilian reals ($1,200) on foreign crypto exchanges. The authority will tax cash earned before 1 January when the owner accesses the funds with a lower 8% rate.
Further, the Brazilian administration believes the new tax could help the nation raise $4B in 2024. Nonetheless, Senator Rogerio Marinho rejected the bill, stating that it reflects the government’s poor management.
Brazil tightens crypto regulation
The 15% taxation on crypto income comes after the Banco Central do Brazil governor revealed plans to stiffen digital assets regulations due to the surging crypto popularity in the country.
The Brazilian market remains friendly to crypto market, attracting notable players such as OKX, which ventured into the country with an exchange and a crypto wallet.
Meanwhile, the updated taxation rules on crypto show the government’s acknowledgment of investor’s source of income, boosting crypto adoption.
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