Brazilian Tax Regulator Publishes Draft on Cryptocurrency Taxation

The Department of Federal Revenue of Brazil (RFB), which administers tax collection in the country, is seeking to receive monthly reports on crypto assets operations, according to a document released by the RFB Tuesday, Oct. 30.

In the paper, the RFB has announced that Brazil-based crypto exchanges are now obliged to send them detailed reports on all crypto-related operations on monthly basis. For instance, the companies have to reveal the amounts of transactions and the identity of the customers.

Moreover, both legal entities and individuals residing in Brazil are now obliged to report all the transactions they have carried out at foreign crypto exchanges if they surpass $10,000 Brazilian reals ($2,700) per month.

The RFB’s draft on crypto taxation also sets a range of fines for those who fail to report their transactions. For the delay of a tax declaration, citizens will have to pay up to 1,500 Brazilian reals ($400). In case the information provided is insufficient or false, the RFB could charge up to 3 percent of transaction value as a fine as well.

The tax watchdog has already opened a public consultation to receive proposals on the new regulation: notes will be accepted from Oct. 31 till Nov. 19.