Brazilian Tax Authority Addresses Crypto
Brazilian tax authority — RFB — issued normative instruction 1.888 outlining initial obligations on crypto assets holdings and trade.
Not far from rules applying to stocks and derivatives trading, it relies on self-reporting and collecting from individuals or legal entities trading crypto, and monthly disclosure of transactions by crypto exchanges.
Monthly transactions in a gross total under BRL 30,000 (~ USD 8k ) are exempt of self-reporting obligations. This allows some room for use of crypto as means of payments on day-by-day activities.
Defining crypto asset as a digital of value in its own unit of account, it makes clear that it covers with no discrimination currency, utility or security cryptos.
Regulation falls short of some important aspects such as transacting of same beneficial owner, deduction of losses, calculation of gains in relative terms and many other aspects but it does however present an assertive and objective ground.
Taxation and reporting obligations are never met with celebration across the board. Moreover, it may imply more transaction and administrative costs. However, for those who are looking forward to merge real economy and the crypto innovation environment, this is a long-waited boon by bringing more regulation clarity.