Brazil Sets Flat 17.5% Tax on Crypto Profits, Ending Exemption for Smaller Investors
Brazil has scrapped a long-standing tax exemption on cryptocurrency gains, with a new provisional measure (MP 1303), imposing a 17.5% tax on all crypto profits for individuals.
Previously, individuals selling up to R$35,000 (around $6,300) worth of crypto per month were exempt from taxation. Before the change, gains above that were taxed progressively, reaching as high as 22.5% for volumes over $5.4 million.
The new rule replaces this system with a flat tax, meaning smaller investors will face higher tax burdens while large holders may see their bills shrink, local news outlet Portal do Bitcoin reports.
The tax will apply regardless of where the assets are held, including in overseas exchanges or self-custodial wallets. Losses can be…
