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Brazilian cryptocurrency owners may soon face changes in their tax obligations as the Senate approves new rules imposing taxes of up to 15% on profits earned from cryptocurrencies held in exchanges outside the country. This significant development could set a precedent for distinguishing between local and foreign cryptocurrency exchanges.
Taxation of <a href="https://en.coin-turk.com/us-data-and-cryptocurrencies-what-does-it-mean-for-investors-10/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cryptocurrency</a> Income: Proposed Changes
The recently approved legislative proposal will tax the income generated from cryptocurrencies held in international exchanges at rates equivalent to those for local income. Individuals in Brazil earning more than 1,200 dollars (6 thousand Brazilian Reais) from exchanges outside the country will be subject to this tax.
<img decoding="async" class="wp-image-282626 size-full" src="https://coin-turk.com/wp-content/uploads/2023/11/brezilya-cointurk.jpeg" alt="" width="2560" height="1707">
The implementation is planned to start on January 1, 2024. Notably, this move harmonizes the tax rates for foreign funds with those applicable to domestic funds. Funds earned before this date will be taxed when withdrawn by the owner. Additionally, gains from funds accessed before December 31 will be taxed at a rate of 8%.
Scope and Impact: Special Funds and Foreign Companies
The bill includes “special funds” comprising single-shareholder investment funds and foreign companies operating in the Brazilian <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">financial</a> market. Through these tax adjustments, the government expects to generate a revenue of 4 billion dollars (20 billion 300 million Brazilian Reais) in 2024. Despite government targets, Senator Rogério Marinho criticized the move as poor management, expressing his opposition.
This legal development followed close behind Brazil’s increasing regulatory scrutiny in the crypto environment. In September, Roberto Campos Neto, the President of Banco Central do Brazil, outlined plans to tighten regulations on cryptocurrency, suspecting its use in tax evasion.
Authority to the Central Bank
The Central Bank had already been granted judicial authority over crypto asset service providers in June. Specifically, crypto-based securities fall under the jurisdiction of Comissão de Valores Mobiliários, the equivalent of the United States Securities and Exchange Commission in Brazil.
As Brazil takes steps to adapt its regulatory framework to the evolving crypto environment, these new tax rules reflect a broader global trend of governments looking to formalize and standardize cryptocurrency taxation. On the other hand, these developments should be seen not as a setback but as an opportunity to establish a legal foundation for the crypto space.
<ul class="summary">
 <li>New tax rules for Brazilians using foreign exchanges.</li>
 <li>Special funds and companies also affected by the law.</li>
 <li>Legal developments reflect a global trend in crypto regulation.</li>
</ul> Continue Reading: <a href="https://en.coin-turk.com/crypto-taxation-in-brazil-new-regulations-for-offshore-exchanges/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/crypto-taxation-in-brazil-new-regulations-for-offshore-exchanges/</a>

Crypto Taxation in Brazil: New Regulations for Offshore Exchanges

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