Brazil ends crypto tax break, imposes 17.5% levy on gains
Brazil is taxing cryptocurrency profits at a flat rate, having scrapped the monthly exemption previously granted to small-scale investors.
Starting June 12, a 17.5% capital gains tax applies to all crypto transactions, regardless of the value or volume, as part of Provisional Measure 1303, introduced by the federal government to increase revenue from financial market activities.
Under the new regulations, taxation applies to crypto assets held in self-custody wallets and digital assets stored overseas. Brazilian investors must now declare all gains quarterly, with the ability to offset losses from the previous five quarters. However, this offset window will be reduced from 2026 onward.
Previously, Brazilians could…
