Brazil’s finance ministry has moved to simplify crypto taxes, swapping a tiered system for a single flat fee. On June 12, Provisional Measure 1303 took impact, scrapping the previous break that allow residents promote as much as R$35,000 (about $6,300) in crypto every month tax‑free. Now, each capital acquire from digital belongings faces a 17.5% levy.
Flat Tax Applies To All Investors
In keeping with native studies, the brand new rule ends the exemption and treats all merchants the identical. Small‑scale sellers who as soon as paid nothing now owe 17.5% on each acquire. Huge gamers might truly lower your expenses. Earlier than, anybody shifting greater than R$30 million in a month hit a 22.5% prime fee. Now they pay simply 17.5%.
Small Merchants Face Greater Payments
Primarily based on studies from Portal do Bitcoin, somebody who offered R$30,000 in crypto final month would have owed zero underneath the previous regulation. Below the brand new flat fee, that individual now owes R$5,250. That’s a steep rise for informal customers and hobbyists.
NEW🇧🇷: Brazil ends crypto tax exemptions with a brand new flat 17.5% tax on all earnings—no extra R$35K month-to-month buffer! Below Provisional Measure No. 1303, even small $BTC or $ETH beneficial properties at the moment are taxed equally. Retail merchants hit hardest, whereas larger gamers might profit.#Brazil… pic.twitter.com/3eETcLCV5i
— FinanceFeeds (@FXFinanceFeeds) June 13, 2025
On the similar time, a dealer dealing with R$10 million in a single deal would drop from roughly R$1.75 million in tax underneath the previous system to R$1.75 million now, so no change. However these above R$30 million save as much as R$150,000 per R$1 million traded.
Quarterly Reporting And Losses
Crypto holdings held in self‑custody wallets or overseas didn’t escape this overhaul. All beneficial properties are tallied each three months. Investors can offset losses from the earlier 5 quarters.
After 2025, that window shrinks. From January 2026 onward, solely losses inside the previous couple of quarters will rely. Merchants will want higher report‑retaining and cautious timing.
Different Property And Betting Focused
This measure isn’t restricted to crypto. Fastened‑revenue papers like LCAs, LCIs, CRIs and CRAs now carry a 5% revenue tax. Betting operators noticed their fee bounce from 12% to 18%. The ministry gained’t say how a lot additional money it expects.
However lawmakers desire a steadier stream after a failed try to lift the Monetary Transaction Tax, which was pulled amid sturdy market and congressional pushback.
In the meantime, in parallel, a separate invoice would let employers pay a part of a wage in crypto, capped at 50%. Full crypto pay would solely be allowed for overseas employees or contractors underneath strict guidelines.
Wages for traditional staff should keep in fiat. Contractors might go for 100% crypto if each side agree. All payouts would use official change charges set by Central Financial institution‑permitted platforms.
Featured picture from Unsplash, chart from TradingView
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