Brazilian Financial Regulator Want to Reform Crypto Tax This Year
The top Brazilian financial regulator has announced a plan to reform the nation’s crypto tax laws.
In an official release from the Receita Federal (RF), the regulator said it would change the way it taxes crypto trading profits in “the first quarter of 2025.”
Brazilian Financial Regulator to Study 24 Tax Proposals
The RF said it had completed a period of public consultation that began in November 2024 and ran until December 20, 2024.
A Receita Federal desk in the customs area of Brasília International Airport. (Source: Magnus Manrik [CC BY-SA 4.0])
The Brazilian financial regulator thanked “everyone” who submitted suggestions. It added that it would now analyze 24 proposals as it seeks to reform the tax system.
The body first launched tax guidelines six years ago in the form of its IN 1888/2019 guidelines.
The RF wants to oblige crypto traders to submit annual tax declarations on a form dubbed “DeCripto” (the Declaration of Cryptoassets).
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The RF said that with “the market’s help,” it would strive to build “adequate standards” for crypto tax in Brazil.
This appears to suggest that most of the submissions came from established and up-and-coming Brazilian crypto players.
The regulator said its new tax guidelines would be “understandable for everyone” and would help traders “avoid tax risks.”
The body added that it would look to step up “enforcement actions” to prevent crypto-related tax evasion in the year ahead.
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Many Questions Remain for Crypto Traders
The RF did not explain how it would go about making the changes to the existing tax code.
Nor did it explain if it would try to streamline the DeCripto with the existing Brazilian Income Tax Return form.
The body spoke of the need to boost “self-regulation opportunities” in the space. But it suggested that it will crack down on offenders with “inspections” and “coercive action.”
Crypto tax enforcement has been relatively lax in Brazil since relevant laws launched in May 2019.
However, the RF’s statement appears to indicate that it wants to start prosecuting suspected crypto tax evaders as adoption continues to gather pace in Latin America.
Last month, a survey conducted by the nation’s Securities and Exchange Commission found that Brazilian investors are storing between 7% and 35% of their wealth in crypto.
Source: cryptonews.com
