The Brazilian Senate yesterday passed new income tax regulations to tax cryptocurrency income from overseas exchanges, and the president is expected to approve the bill. Starting January 1, 2024, any Brazilian tax resident who earns more than $1,200 on overseas exchanges will pay a tax of up to 15%. The bill also contains transitional arrangements whereby funds earned before 2024 will be taxed at a rate of 8% if withdrawn before December 31, 2023.
It is understood that since June, the Central Bank of Brazil has gained jurisdiction over virtual asset service providers; while cryptocurrency-based securities are regulated by Brazil’s Comissão de Valores Mobiliários (equivalent to the U.S. Securities and Exchange Commission).
Various developments show that the Brazilian government is conducting stricter regulations on the cryptocurrency market and trying to increase fiscal revenue by taxing overseas cryptocurrency assets.
