๐ข Brazil Approves New Income Tax Rules: 15% Tax on Crypto Held Abroad
The Brazilian Senate has given the green light to fresh income tax regulations, signaling a significant change for cryptocurrency holders. Here's the scoop:
๐ International Impact:
Starting January 1, 2024, Brazilians earning more than $1,200 from foreign-based exchanges will be subject to a maximum tax of 15%. This move comes as part of broader legislation approved by the Chamber of Deputies and awaits President Luiz Inรกcio Lula da Silva's sanction.
๐ผ Key Provisions:
Tax Rate: Individuals with earnings from international exchanges will face a tax rate equivalent to domestically held funds.Transitional Period: Funds accessed before December 31, 2023, will be taxed at 8%, while those accessed afterward will be subject to the full 15% rate.Revenue Target: The government has set a revenue target of $4 billion for these taxes in 2024, affecting "exclusive funds" and foreign companies in Brazil's financial market.
๐ฃ๏ธ Voices of Dissent:
Senator Rogรฉrio Marinho has criticized the bill, citing poor government management as the reason behind the introduction of this tax.
๐ก Context and Regulation:
This move aligns with Brazil's efforts to regulate and tax cryptocurrencies amid their rising popularity. In September, the Banco Central do Brazil outlined plans to tighten cryptocurrency regulations, expressing concerns about potential tax evasion. The central bank gained authority over virtual asset service providers earlier this year, while crypto-based securities are regulated by the Comissรฃo de Valores Mobiliรกrios.
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