Brazil Sets Flat 17.5% Tax on Crypto Profits, Ending Exemption for Smaller Investors

Brazil has enacted a new tax law (MP 1303) that eliminates the long-standing exemption on cryptocurrency gains, imposing a flat 17.5% tax on profits for individuals. Previously, individuals selling up to R$35,000 (approximately $6,300) monthly were exempt, but now all crypto profits are taxed equally, shifting more burden to smaller investors. This measure also applies to overseas holdings and offers limited loss offsets. Additionally, the new rule affects fixed-income investments and online betting, with corresponding tax increases aimed at enhancing government revenue. For more details, explore the full implications of this tax reform. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: CoinDesk