Early Bird

<ul>
 <li>The legislation is set to take effect on January 1, 2024.</li>
 <li>Those who start paying their taxes in 2023 will get an early bird discount.</li>
</ul>
Brazilian individuals’ crypto assets kept overseas will now be subject to taxes, according to a bill signed into law by President <a href="https://www.britannica.com/biography/Luiz-Inacio-Lula-da-Silva" target="_blank" rel="noopener noreferrer nofollow">Luis Inácio Lula da Silva</a>.
After being signed by the President on December 12, the legislation was published the next day in the Official Diary of the Union, also known as the <a href="https://www.in.gov.br/servicos/diario-oficial-da-uniao" target="_blank" rel="noopener noreferrer nofollow">Diário Oficial da União</a>. The legislation is set to take effect on January 1, 2024.
Crypto income and dividends received by Brazilian taxpayers from outside investment funds, platforms, real estate, or trusts will also be subject to the new taxes. By 2024, the Brazilian government hopes to have collected an additional 4 billion reals ($20 billion).
<h3 class="wp-block-heading" id="h-early-bird-discount">Early Bird Discount</h3>
Those who start paying their taxes in 2023 will get an early bird discount: they will pay an 8% tax on all income earned up to 2023 in installments, with the first payment due in December. The new tax rate will be 15% beginning in the year 2024. Profits made outside of Brazil up to 6,000 reais ($1,200) are not subject to taxes.
Digital asset revenue has been taxed in <a href="https://thenewscrypto.com/circle-and-nubank-partner-to-increase-digital-dollar-access-in-brazil/" rel="noopener noreferrer nofollow">B</a><a href="https://thenewscrypto.com/circle-and-nubank-partner-to-increase-digital-dollar-access-in-brazil/" target="_blank" rel="noopener noreferrer nofollow">r</a><a href="https://thenewscrypto.com/circle-and-nubank-partner-to-increase-digital-dollar-access-in-brazil/" rel="noopener noreferrer nofollow">azil</a> before, according to João Carlos Almada, controller of stablecoin issuer Transfero. But he did mention that the legislation may require further elaboration on some points.
Not only is Brazil interested in its citizens’ cryptocurrency holdings abroad, but so are other countries. Likewise in November, the Spanish Tax Administration Agency <a href="https://thenewscrypto.com/spain-tightens-grip-on-crypto-holders-with-new-reporting-rules/" target="_blank" rel="noopener noreferrer nofollow">emphasized</a> the need of individuals disclosing any cryptocurrency held abroad.
People whose net worth exceeds fifty thousand euros (about $55,000) in digital assets are the only ones who are concerned about that need, however.
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Brazil Implements Overseas Crypto Asset Taxation Starting January 2024

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