Brazil Approves 15% Tax on Crypto Earnings on Overseas Exchanges Starting in 2024

Brazil will impose a 15% tax on crypto earnings situated on foreign cryptocurrency exchanges after the president signs the bill.

Citizens of Brazil who own cryptocurrency assets and revenues on offshore cryptocurrency trading platforms are subject to a tax of up to 15%.

The Brazilian senate has passed the new income tax legislation, which include a 15% tax on keeping cryptocurrency assets abroad.

The measure is currently awaiting President Luiz Inacio Lula da Silva’s approval, which could make it effective on January 1, 2024. It has previously been approved by the Chamber of Deputies.

But only investment funds with a single shareholder and individuals earning more than $1,200 from overseas cryptocurrency exchanges will be subject to the tax. According to reports, the Brazilian government wants to use these new tax laws to raise $4 billion.

The administration took this action in response to the country’s recent spike in interest in cryptocurrencies. Recently, the governor of Brazil’s central bank announced steps to strengthen laws pertaining to cryptocurrencies and their involvement in tax evasion.

Furthermore, plans call for Brazil to open the country’s second cryptocurrency regulatory sandbox in 2024.

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