Investing in cryptocurrencies has become an increasingly popular practice among Brazilians. Despite the lack of specific regulation in Brazil, the Federal Revenue established rules in 2019 for the inclusion of these assets in the annual Income Tax declaration. In this guide, we will understand how to declare cryptocurrencies, the values involved, and the tax obligations for investors.
What Are Cryptocurrencies? Cryptocurrencies are decentralized digital currencies that exist only on the internet. Unlike traditional currencies, they are not controlled by government entities but operate through blockchain technology. This system acts as a ledger, transparently and securely recording all transactions.
Declaration Obligations: According to the Federal Revenue regulations, investors with an acquisition value equal to or exceeding R$ 5,000 in cryptocurrencies until December 31 of the previous year must declare these assets in the Income Tax. The obligation is by crypto-asset category, and the values must be declared in Brazilian Reais, considering the acquisition value, not the market value.
Taxes on Cryptocurrencies: Taxes are applied to profits from sales exceeding R$ 35,000 per month. Transactions below this value are exempt but must be declared when the acquisition value of cryptocurrencies in the wallet is equal to or exceeds R$ 5,000. Additionally, transactions abroad or outside of exchanges must be declared to the Federal Revenue.
Income Tax Rates: Income tax rates on cryptocurrency operations range from 15% to 22.5%, depending on the amount of income. Like other variable income investments, it is the investor’s responsibility to calculate, issue the Document of Federal Revenue Collection (Darf), and pay the tax monthly.
How to Declare Cryptocurrencies in Income Tax: Cryptocurrencies should be declared in the “Assets and Rights” section of the Revenue system, using specific codes for each type of currency. The declaration includes the acquisition value plus costs, and the breakdown should contain details about the cryptocurrency and the custodian company.
Tax Payment: Profit declarations must be monthly, with the investor responsible for calculating and collecting the tax. The Darf must be issued and paid by the last business day of the following month. Gains should also be recorded in the Federal Revenue’s GCAP program.
Declaration Tips:
Check all information before submitting the declaration, especially if using the pre-filled declaration.
Use information from the income statement, especially if you have investments or products with Nubank.
Although cryptocurrencies do not yet have specific regulation, it is crucial for investors to be aware of the tax obligations related to these assets. This guide serves as a starting point, but in case of doubts, it is recommended to seek the guidance of an accountant or qualified professional to assist with the declaration.
This content considers the declaration rules for 2023, as the guidelines for 2024 have not been disclosed by the Federal Revenue.
