INSUBCONTINENT EXCLUSIVE:
Brazil has ended its tax exemption for small-scale crypto profits, introducing a 17.5% flat rate on all capital gains from digital assets
taxation.Until now, Brazilian residents who sold up to 35,000 Brazilian reals (roughly $6,300) in crypto assets per month were exempt from
Gains beyond that were taxed progressively, starting at 15% and reaching as high as 22.5% for volumes above 30 million Brazilian reals.The
new flat rate, which went into effect starting June 12, removes all exemptions and applies equally to all investors regardless of the size
burdens, high-net-worth individuals could end up paying less
Under the previous system, large trades, those exceeding 5 million Brazilian reals, were taxed between 17.5% and 22.5%
With a uniform 17.5% rate now in effect, many large investors will see their effective tax rate drop.Provisional Measure 1303
cryptoThe provisional measure also expands the tax base
Crypto assets held in self-custody wallets and foreign crypto holdings are now included in the tax regime.Per the report, taxation will be
assessed quarterly, with investors allowed to offset losses from the previous five quarters
However, from 2026 onward, the window for loss deduction will be tightened.The overhaul extends beyond crypto
Fixed income instruments, once exempt from income tax, such as Agribusiness and Real Estate Credit Letters (LCAs and LCIs), as well as Real
Estate and Agribusiness Receivables Certificates (CRIs and CRAs), will now incur a 5% tax on profits.Meanwhile, taxation on betting revenue
has increased from 12% to 18%.The finance ministry introduced these changes following backlash over an earlier attempt to hike the Financial
World crypto paymentsBrazil considers allowing Bitcoin salary paymentsIn March, Brazilian lawmakers put forward a proposal that would permit
employers to pay workers partially in cryptocurrencies like Bitcoin (BTC)
The bill prohibits paying wages entirely in digital assets for standard employees.The legislation would also permit independent contractors
to receive full payment in crypto if agreed upon contractually
All crypto payouts must use official exchange rates from Central Bank-authorized institutions.Magazine: Bitcoin $119K price if oil holds?
