Cryptocurrency

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<h2 id="span-span-data-font-font-size-style-font-size-19px-brazil-citizens-will-pay-up-to-15-percent-of-crypto-profits-to-state-span-span-br">Brazil Citizens Will Pay Up To 15 Percent Of Crypto Profits To State </h2>
On December 12, President Luis Inácio Lula da Silva of Brazil sanctioned legislation that mandates the taxation of crypto assets held overseas by Brazilian citizens.
This law, published in the official Gazette of the Union the following day, is set to be enforced starting January 1, 2024, with certain conditions.
Beyond&nbsp;<a href="https://www.coingabbar.com/en/crypto-currency-news/connection-between-dark-web-transactions-and-crypto" class="f-link" rel="noopener noreferrer nofollow">cryptocurrencies</a>, the taxation extends to profits and dividends earned by Brazilian taxpayers through investment funds, platforms, real estate, or trusts situated abroad. The government aims to generate approximately 20 billion reals, which is equal to $4 billion, in new tax revenue for the upcoming year.
<h3 id="span-span-data-font-font-size-style-font-size-16px-early-adoption-benefits-and-tax-rates-for-overseas-earnings-span-span">Early Adoption Benefits and Tax Rates for Overseas Earnings</h3>
Individuals opting to pay taxes this year enjoy an advantageous rate of 8% on all income accrued until 2023, payable in installments commencing in December.
Starting in the following year, the tax rate will be fixed at 15%. Additionally, earnings from abroad up to 6,000 Brazilian Reais ($1,200) remain exempt from taxation.
João Carlos Almada, Controller at Transfero, a Brazilian&nbsp;<a href="https://www.coingabbar.com/en/crypto-blogs-details/what-are-stablecoins-and-how-do-they-function" class="f-link" rel="noopener noreferrer nofollow">stablecoins</a> issuer, highlighted that the taxation of digital asset income isn't entirely new within the country's financial landscape.
<h4>Spanish Tax Agency Joins Brazil in Monitoring Citizens Foreign Crypto Assets</h4>
In a parallel move to Brazil's recent actions, the Spanish Tax Administration Agency has taken steps to ensure its citizens comply with tax regulations concerning cryptocurrency assets held overseas. This initiative, announced in November, serves as a reminder for individuals to declare such assets in their financial reports, with specific criteria in mind.
The focus of the Spanish Tax Administration Agency is aimed at individuals whose balance sheets reflect holdings exceeding the equivalent of 50,000 euros, or approximately $55,000, in digital assets stored abroad.
While the directive aligns with broader global efforts to regulate and monitor cryptocurrency transactions, it introduces a threshold, indicating a targeted approach rather than a blanket obligation for all crypto holders.
This move highlights a growing trend among governments worldwide to assert greater control and transparency over crypto-related wealth, emphasizing the need for individuals to report and disclose overseas holdings accurately.
It not only aligns with efforts to curb potential tax evasion but also serves as a pivotal step toward regulating the increasingly influential realm of digital assets.
Also Read: <a href="https://www.coingabbar.com/en/crypto-currency-news/safemoon-market-goes-down-after-filed-for-bankruptcy" class="f-link" rel="noopener noreferrer nofollow">Safemoon Files For Chapter 7 Bankruptcy After SEC Fraud Charges</a>

Brazil Enacts Legislation for Taxation on Cryptocurrency Abroad

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