Questions tagged [taxed in brazil]

EthereumEagleGuard Wed Jul 10 2024 | 5 answers 1080

In Brazil, the taxation of bitcoin transactions has been a topic of discussion and evolving regulations over the years. Initially, in 2014, the Central Bank of Brazil declared that bitcoin was not considered a currency or financial asset, thus falling outside the scope of traditional financial regulators. However, it was emphasized that bitcoin transactions were still subject to anti-money laundering laws and tax regulations. In 2017, the Brazilian Federal Revenue Service issued a regulation requiring bitcoin trading platforms and users to report transaction information to the tax authorities and pay corresponding taxes. This marked a shift in regulation, aimed at preventing tax evasion and money laundering activities related to bitcoin transactions. More recently, Brazil has taken further steps to tax cryptocurrency transactions. A new tax law signed by the President in 2023 will impose a 15% tax on Brazilian citizens' overseas cryptocurrency income earned from exchanges exceeding $1,200. This law, effective from January 1, 2024, aims to raise approximately $4 billion for the government. So, in summary, while bitcoin itself is not considered a currency or financial asset in Brazil, transactions involving bitcoin are subject to taxation, especially with the implementation of the recent tax law. Therefore, to answer the question, **yes, bitcoin transactions are taxed in Brazil**.