Brazilians may soon need to stump up taxes on crypto held abroad
A bill has been passed by the Brazil Senate and the Chamber of Deputies which levies a 15% tax on income from cryptocurrencies on exchanges based outside Brazil, for any Brazilian earning more than $1,200. Expected to be approved by President Luiz Inácio Lula da Silva, the law will take effect on January 1, 2024. Earnings before that date will be taxed when accessed by the owner, while earnings accessed before December 31 will be taxed at 8%. The law also applies to “exclusive funds” and foreign companies active on the Brazilian market. The government aims to raise $4 billion in 2024 from the tax. This hierarchy move follows the Banco Central do Brazil's plan to tighten regulations on cryptocurrency use in the face of its increasing popularity.
