Brazilians may soon need to stump up taxes on crypto held abroad
The new rules would make income from crypto held on exchanges outside Brazil taxable at the same rate as local income.
Brazilians may soon be required to pay up to 15% tax on income derived from cryptocurrencies held on exchanges outside the country, after new income tax rules were approved by the Brazil Senate on Nov. 29.
The bill has already passed in the Chamber of Deputies and is expected to be approved by President Luiz Inácio Lula da Silva, as his administration initiated the income tax rule changes, Cointelegraph Brazil reports.
Under the bill, any Brazilian who earns more than $1,200 (6,000 Brazilian reals) on exchanges based outside Brazil would be subject to the tax, effective Jan. 1, 2024. The change makes those funds taxable at the same rate as funds held domestically. Funds earned before that date would be taxed when accessed by the owner, meanwhile, earnings on funds accessed before Dec. 31 will be taxed at 8%.
Fortunately, you are misunderstanding this
Brazil is not taxing people regardless of residency
What changes with PL 4173/23:
CURRENTLY: Tax-deferral
If you own an offshore company or trust while being a Brazil tax resident, you only pay tax when it distributes profits to...