Bitcoin

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  If approved, the legislation would place crypto assets held by Brazilians overseas subject to the same tax rules governing traditional assets. 
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<div class="cointelegraph"> 
 <p>Brazilian lawmakers are moving forward with a legislation that would raise <a rel="noopener noreferrer nofollow" title="taxes" href="https://thebittimes.com/tag/taxes.html">taxes</a> on <a rel="noopener noreferrer nofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> held overseas. According to local reports, a congressional committee has approved amendments to a bill that recognizes <a rel="noopener noreferrer nofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> as "financial assets" for tax purposes in foreign investments.</p> 
 <p>In addition, the bill taxes gains on crypto asset fluctuations against Brazil's fiat currency, as well as income from fluctuations in the exchange rate of foreign fiat currencies. According to congressman Merlong Solano, the revision seeks to promote equal tax treatment since crypto investments abroad currently receive lower tax breaks.</p> 
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  <img src="https://cdn.thebittimes.com/images/2023/08/13/76503fc7a63433e951e5587bf0fa09df.webp"> 
  <figcaption style="text-align: center;"> <em>The legislation places crypto assets held by Brazilians overseas under the same tax rules as traditional assets.</em> 
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 <p>The changes could make local exchanges less costly options for some investors, in particular those with gains above the top tax bracket. Overseas earnings up to 6,000 Brazilian reais (~$1,200) will be exempt from taxation under the new rules. Earnings between 6,000 and 50,000 (~$10,000) are subject to a 15% tax rate. Above this threshold, <a rel="noopener noreferrer nofollow" title="taxes" href="https://thebittimes.com/tag/taxes.html">taxes</a> will be applied at 22.5%. </p> 
 <p>According to the legislation, changes will only apply to <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency exchanges without offices in Brazil. The new rules have the potential to boost activity on national <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> exchanges and to lure international players to establish local offices.&nbsp;A number of global <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> exchanges operate in the country, including Binance, Coinbase, Bitso, and Crypto.com, as well as local players such as Mercado Bitcoin and Foxbit.</p> 
 <p>Congress will vote on the bill on Aug. 28. If approved, the new taxation will take effect in January 2024.</p> 
 <p>Recent months have seen a rapid development of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>-related activities in Brazil. The country's central bank recently announced a rebranding of its central bank digital currency (CBDC), now called Drex. As part of the launch of Drex, the central bank plans to introduce a tokenization system aimed at expanding business access to capital.</p> 
 <p><strong><em>Magazine:&nbsp;</em></strong><strong><em>Should you ‘orange pill’ children? The case for Bitcoin kids books</em></strong></p> 
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Brazil's Congress moves to levy higher taxes on cryptocurrencies

TheBitTimes

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