The end of the year has arrived, our blessed $BTC has reached the long-awaited 100K, but not everything is just flowers, the boring time of business has arrived for all those who decide to walk in compliance: the time is coming to pay attention to our beloved little lion. THE LION OF THE FEDERAL REVENUE 😞

Brazilians who trade on Binance or other cryptocurrency exchanges need to be aware of the tax obligations set by the Brazilian Federal Revenue Service. Here are the main applicable taxes and declarations:

1. IN 1888/2019 (Declaration of Transactions with Cryptoassets)

Normative Instruction 1888/2019 requires taxpayers to inform the Federal Revenue Service of all cryptocurrency transactions that meet certain criteria.

  • Who must declare:

    • Users who moved more than R$30,000 in cryptocurrency transactions in a single month.

    • This includes buying, selling, exchanging, donating, transferring and other transactions.

    • The obligation to declare falls on the user, if the transaction was carried out outside Brazilian exchanges.

  • How to declare:

    • Submission is made through the Federal Revenue Service's National Collection system, using the layout specified in the standard.

    • The deadline is the last business day of the month following the operation.

2. Income Tax (IRPF)

In addition to IN 1888, there is an obligation to declare and, in some cases, pay income tax on earnings from cryptocurrencies.

Annual Income Tax Declaration

  • Who must declare:

    • Anyone who owned more than R$5,000 in cryptocurrencies on the last day of the calendar year.

    • Cryptocurrencies must be reported in the “Assets and Rights” section under the code “08 – Cryptoassets”.

  • What to declare:

    • The cryptocurrency balance on the last day of the year.

    • Operations carried out during the year (purchase, sale, exchange, etc.).

Payment of Capital Gains Tax

  • Who should pay:

    • Anyone who earned more than R$35,000 per month from selling or exchanging cryptocurrencies.

    • The tax rate varies between 15% and 22.5%, depending on the amount of the gain.

  • How to calculate and pay:

    • Use the IRS's GCAP (Capital Gains) program to calculate the tax.

    • Payment must be made by the last business day of the month following the transaction via DARF (Federal Revenue Collection Document).

Penalties for Non-Compliance

  • Fines for failure to declare IN 1888:

    • From 1.5% to 3% of the value of the undeclared transaction.

  • Income Tax Fines:

    • Fine of 20% on the tax due, in addition to interest and correction.

Tips for Maintaining Compliance

  1. Keep detailed control of all your operations.

  2. Use cryptocurrency management tools to generate movement reports.

  3. Consult a cryptocurrency accountant to ensure you are meeting tax requirements.

📍So? Do you agree with all these taxes? Or do you have any different ideas?

$USUAL

$XRP