INTRODUCTION:
Hello Satoshis Whales! Today I came to bring a more politically correct post, aimed at those who like to follow the law and not have problems with the Federal Supreme Court or the Federal Revenue (RF), both bodies in Brazil that were created to guarantee the constitutionality of laws in Brazil and administer and monitor federal taxes, respectively (trust 👀).
⭐TAX ELISION
First of all, we need to differentiate tax avoidance (LEGAL) from tax evasion (ILLEGAL):
🔥 TAX EVASION: Tax evasion can occur if someone tries to avoid declaring capital gains obtained from the sale of cryptocurrencies or if they do not correctly report their cryptocurrency transactions to the tax authorities (a danger as not all of us have knowledge of specialized accountants or capital to hire them).
Not to mention that tax evasion is an illegal practice and can result in serious penalties. So be careful with your decisions from 2025 onwards, as probably any profit from trades and swing trades will have to be taxed and people will be heavily investigated by the RF, prosecuted and arrested for using their money as they wish, of course all this with lots of love. 😍
🤑TAX ELISION: Tax avoidance is a legal practice of minimizing the tax burden within the limits permitted by law. However, specific tax avoidance advice may vary depending on the specific tax laws of each country/state/province and may require the involvement of qualified professionals. If you have the knowledge of so many tax laws in Brazil or the courage to evade, good luck there partner.
Note: remembering that I am only commenting on what I will do in my life from 2025 onwards, and sometimes my rule of life cannot apply to your strategy, reality or philosophical ideals.
Summarizing what the taxation laws are like in 2024 and what they will look like in 2025:
🤔2024:
Currently, the sale of up to R$35,000 in cryptocurrencies is tax-free, a legal loophole (tax avoidance) that has been exploited by investors to avoid taxation.
Today, any individual who profits from R$35,000 per month with cryptoactives, traded in Brazil, must download the GCAP program, on the RF website, and declare the cost and date of acquisition, as well as the value and date of sale.
After the information is filled in, the program generates a DARF guide for paying the tax, which must be done by the last business day of the month following the transaction, with progressive rates from 15% to 22.5% - which vary according to the amount of monthly earnings.
🤡2025:
The new proposal aims to apply the 15% rate, but they are even talking about 25% — the same as for financial applications — whenever the virtual asset represents a financial application.
Although they have recently changed crypto taxation rules, with the growth of the market, the state's eye has grown a little more on these profitable investor operations. Now the plan for the year 2025+ is that "everyone" will be taxed on any profitable operation, regardless of values or place in which it is operating (Brazil or abroad).
⭐HOLD and DCA: My cat leap, I mean Whale leap 🐳:
Holding cryptocurrencies on hold(1) is not tax evasion in itself, unless they change that in 2026 😅.
(1) "Hodl" is a popular term in the cryptocurrency community that means buying digital currencies and never selling them.
As long as you correctly declare your capital gains when you sell or exchange your cryptocurrencies and pay the taxes due, there will be no tax evasion.
Therefore, I intend to make recurring purchases from 2025 onwards and no longer sell cryptocurrencies until I leave Brazil on a fine day.
It looks like I'll be taking forced holding and foreign language courses while I'm here, and maybe one day I'll be escaping to Daniel Fraga's island or El Salvador to sell my tax-free profits.
