Brazil Implements Overseas Crypto Asset Taxation Starting January 2024. A bill that President Luis Inácio Lula da Silva signed into law makes Brazilians’ crypto assets held abroad taxable.
The legislation was published in the Official Diary of the Union, sometimes called the Diário Oficial da União, the day after the President signed it on December 12. January 1, 2024, is the scheduled effective date of the legislation.
Brazilians must also pay taxes on dividends and crypto revenue from outside investment funds, platforms, real estate, or trusts. The goal of the Brazilian government is to have amassed an extra 4 billion reals, or $20 billion, by the year 2024.
Early Bird Discount
Earnings up to 2023 will be subject to an 8% tax rate, with the first installment due in December, for those who begin paying their taxes in 2023. Early birds will receive a discount. In 2024, the tax rate will be changed to 15%. No taxes are due on profits up to 6,000 reais ($1,200) earned outside Brazil.
João Carlos Almada, controller of stablecoin issuer Transfers, claims that digital asset revenue has already been subject to taxation in Brazil. He did say that the bill could use some more detail.
Brazil isn’t the only country that citizens know about their citizens’ bitcoin holdings abroad. Also, in November, the Spanish tax agency stressed that people should report any cryptocurrency they had in an offshore account.
But nobody cares about that need until their net worth is more than 50,000 euros (about $55,000) in digital assets.