Brazil is imposing a tax of up to 15% on its citizens who hold crypto assets and earnings on offshore crypto exchange platforms.
The 15% tax on international crypto asset holdings is proposed under the new income tax regulations, approved by the Brazilian Senate.
The bill has already been approved by the Chamber of Deputies and now awaits President Luiz Inacio Lula da Silva’s sanction, after which it could become effective on January 1, 2024.
However, the tax will only be imposed on single-shareholder investment funds and people who earn more than $1,200 from foreign crypto exchanges. The Brazilian government has reportedly set a target to collect $4 billion with these new tax regulations.
The move from the government comes after witnessing a recent surge in crypto popularity within the country. Brazil’s central bank governor also recently outlined plans to tighten regulations regarding cryptocurrency and its role in tax evasion.
Additionally, Brazil is also planning to launch the second regulatory sandbox for crypto in 2024.
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