Brazil Sets Flat 17.5% Tax on Crypto Profits, Ending Exemption for Smaller Investors

Brazil has scrapped a long-standing tax exemption on cryptocurrency positive aspects, with a brand new provisional measure (MP 1303), imposing a 17.5% tax on all crypto earnings for people.

Previously, people promoting as much as R$35,000 (round $6,300) value of crypto per thirty days have been exempt from taxation. Before the change, positive aspects above that have been taxed progressively, reaching as excessive as 22.5% for volumes over $5.4 million.

The new rule replaces this method with a flat tax, that means smaller buyers will face increased tax burdens whereas massive holders may even see their payments shrink, native information outlet Portal do Bitcoin reviews.

The tax will apply no matter the place the property are held, together with in abroad exchanges or self-custodial wallets. Losses might be offset, however solely inside a rolling five-quarter window, a rule that can turn out to be stricter beginning in 2026.

The authorities says the overhaul is geared toward boosting tax income after strolling again a proposed hike to the IOF monetary transaction tax, which had drawn business and congressional criticism.

Alongside crypto, the brand new measure impacts fixed-income investments and on-line betting, with the previous now incurring a hard and fast 5% tax on earnings and the latter seeing taxes on operator revenues rise from 12% to 18%.