Brazil Introduces New Crypto Tax Law for Overseas
Legislators in Brazil have added cryptocurrency taxation laws to the legal framework of the country. As per the latest updates, the citizens who are dealing in cryptocurrencies are to assign 15% out of their profits. President Luis Inacio Lula da Silva signed the bill containing the taxation rules for cryptocurrency investors who have Brazilian citizenship but traveling abroad.
The bill was signed and published in a public notification site. As per the notification, the new taxation laws are set to go live on 1st January, 2023.
Furthermore, new taxation laws are not going to be applicable on cryptocurrency investors only. Legislators have also added revenue and dividend incomes generated from investment funds, trading platforms, trusts, and real estate, etc.
The government of Brazil has set a collection benchmark at 20 billion reals or $4 billion from blockchain sector in 2024.
New Tax Requirements for Crypto Investors
Cryptocurrency investors hailing from Brazil who have entered the taxation bracket in 2023 can visit the government sites to collect taxation requirements.
As per the updated taxation laws for digital asset traders, the newly added crypto investors starting the ongoing year are to pay 8% levy on whole income accumulated during 2023 in installments. This taxation process will start from December this year.
Meanwhile, for 2024 taxation rates are starting at 15% for Brazilian digital currency investors who are traveling aboard. In this manner, overseas tax payers will be able to avail a tax exemption of up to 6000 Brazilian reals or $1200.
Joao Carlos Almada of Brazilian stablecoin firm Transfero noted that taxes for digital currency income are not a new development for the nation. He further noted that there are various aspects of the regulations that will allow legislators to add further clarification on the matter.
Impact of New Tax Law on Crypto Industry
Blockchain firms and services providers have talked about various aspects and impact of new tax laws. Speaking on the regulations, Almada highlighted some taxation requirements for adding changes.
One such area is taxation based on stock market investments. He claimed that with the passage of time, the legislators and stakeholders from blockchain sector will conduct discussions on the regulatory changes. He asserted that the scope of the blockchain tax debate will bring greater transparency and bringing additional credibility to the industry.
The current state of regulatory and taxation laws in the blockchain sector is rapidly evolving around the world. On this account, Brazil is not the only country to add cryptocurrencies to taxation requirements.
Spain also Introduces New Tax Requirements
Spain is another nation that has recently updated its digital currency taxation requirements. The Tax Administration Agency of Spain recently issued a notification for traveling locals to declare their crypto profits.
However, the state adds investors to taxation threshold with an income proceeding 50000 euros or $55000 generated from digital currency investments.
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