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<p>New income tax rules approved by the Brazilian Senate may require Brazilians to pay up to a 15% tax on income from cryptocurrencies held on foreign exchanges.</p> 
<p>The bill, having already passed in the Chamber of Deputies, is anticipated to be approved by President Luiz Inácio Lula da Silva, who initiated the income tax rule changes.</p> 
<h3 id="brazil-and-crypto-tax-rules">Brazil and Crypto Tax Rules</h3> 
<p>Effective January 1, 2024, the tax applies to any Brazilian earning over $1,200 (6,000 Brazilian reals) on foreign exchanges, aligning their tax rate with funds held domestically. Upon access, funds earned before this date will incur a tax rate of 8% for earnings accessed before December 31.</p> 
<p>Note that this is the crypto profit derived by trading on foreign exchanges. This rule isn’t applicable to expats leaving in Brazil with no residency status.</p> 
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            <p>If you are a tax resident in Brazil and own an offshore company or trust, taxes are only applicable when the entity distributes profits to you. Any funds retained abroad remain exempt from taxation. However, if you are a tax resident in Brazil and own an offshore company or trust, you will be subject to individual taxes on any profits attributed to you, regardless of whether they are distributed.</p> 
            <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
             <p lang="en" dir="ltr">Fortunately, you are misunderstanding this</p> 
             <p>Brazil <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f1e7-1f1f7.png" alt="🇧🇷" class="wp-smiley" style="height: 1em; max-height: 1em;"> is not taxing people regardless of residency</p> 
             <p>What changes with PL 4173/23:</p> 
             <p>CURRENTLY: Tax-deferral</p> 
             <p>If you own an offshore company or trust while being a Brazil tax resident, you only pay tax when it distributes profits to… <a href="https://t.co/iiG1YyVUr9">https://t.co/iiG1YyVUr9</a></p> 
             <p>— BowTiedGlobe | Your Freedom Dealer (@BowTiedGlobe) <a href="https://twitter.com/BowTiedGlobe/status/1729828704199512176?ref_src=twsrc%5Etfw">November 29, 2023</a></p>
            </blockquote> 
            <p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
            <p>Furthermore, the legislation also impacts “exclusive funds,” referring to investment funds with a single shareholder, as well as foreign companies operating in the Brazilian financial market. The government aims to generate $4 billion (20.3 billion Brazilian reals) in revenue in 2024. Senator Rogério Marinho expressed his dissenting opinion on the bill.</p> 
            <p>“The government is creating a tax because it is a poor manager,” he said.</p> 
            <h3 id="initiating-regulatory-measures">Initiating Regulatory Measures</h3> 
            <p>In September, Roberto Campos Neto, the governor of Banco Central do Brasil, unveiled intentions to <a href="https://coingape.com/breaking-brazil-introduces-bill-regulate-bitcoin-btc-citizens-call-flawed/" target="_blank" rel="noopener">enhance cryptocurrency regulations</a> due to a significant surge in its popularity within the country. During this announcement, he expressed concerns about the potential use of crypto for tax evasion.</p> 
            <p>In June, the Brazilian central bank gained authority over virtual asset service providers, while crypto-based securities are overseen by the Comissão de Valores Mobiliários, the Brazilian equivalent of the United States Securities and Exchange Commission.</p> 
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<p>The post <a rel="nofollow" href="https://coingape.com/brazil-too-soon-introduce-tax-on-crypto-profits-will-this-impact-adoption/">Brazil To Soon Introduce Tax on Crypto Profits, Will This Impact Adoption?</a> appeared first on <a rel="nofollow" href="https://coingape.com">CoinGape</a>.</p>

Brazil To Soon Introduce Tax on Crypto Profits, Will This Impact Adoption?

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Coingape News Media

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