BCGAME - Free 5BTC Daily Bonus!How does cryptocurrency taxation work in Brazil? Cryptocurrency taxation in Brazil requires attention from investors. The Federal Revenue Service requires that earnings from crypto assets be declared and taxes the profits, with variable rates.
The level of detail required for this information in the Income Tax returns increases every year. Since 2019, taxpayers have been required to include cryptocurrencies in the “Assets and Rights” form, indicating the type of asset: bitcoins, altcoins, stablecoins or NFTs.
An important change will be introduced in the 2025 Income Tax. It is now necessary to directly declare the gains from crypto assets held abroad in the Annual Income Tax Return. The rules change frequently, and the variety of crypto assets is only growing. Those who work in this digital market need to keep up with these changes to avoid problems with the tax authorities.
In this article, we will discuss:
What is cryptocurrency for the IRS?
A IRS considers cryptocurrency as a digital representation of value. This value is recorded in its own unit and can be expressed in national or foreign currency. Transactions are made electronically, using cryptography and technologies such as distributed ledgers.
Cryptocurrencies are not recognized as legal tender in Brazil. They can be used as investments, as a means of transferring money or as access to digital services. For tax purposes, crypto assets are treated as assets subject to capital gains. This includes Bitcoin, Ethereum, stablecoins and other digital tokens. They must be declared in the Income Tax, just like other assets, for example:
- Share
- Properties
- Vehicles
- Bank accounts
This classification is in line with the Cryptocurrency Legal Framework, which defines cryptoassets as electronically tradable digital representations used for payments or investments. The Federal Revenue's vision is also close to the concept defended by the creator of Bitcoin, who described it as a decentralized form of electronic money, ideal for online payments.
Why do I need to declare cryptocurrencies in my Income Tax?
Anyone who has cryptocurrencies must report these assets on their Personal Income Tax Return (IRPF). Even without sales or profits, the declaration is mandatory for anyone who has crypto assets with an acquisition value equal to or greater than 5.000,00 BRL until December 31 of the base year.
In the file Assets and rights, the taxpayer details each type of digital asset, indicating quantity, date and purchase value in reais. This applies to Bitcoin, altcoins, stablecoins and NFTs.
If cryptocurrency sales in a month exceed 35.000,00 BRL, it is necessary to calculate the capital gain and pay tax on the profit. The rates range from 15% for gains up to R$5 million, up to 22,5% for larger amounts.
The tax must be paid via DARF by the last business day of the month following the sale. Late payments will result in a daily fine of 0,33%, interest and penalties that may exceed 150% of the amount due.
How does cryptocurrency taxation work in Brazil?
Table: cryptocurrency taxation in Brazil, how it works, summary.
| Rules | Description |
|---|---|
| Income Tax Declaration | Cryptocurrencies are assets and must be declared in the “Assets and Rights” form, with a specific code for each asset, including quantity, date and acquisition value in reais. |
| Profit tax | If sales in the month exceed R$35.000,00, tax is levied on the profit from the sale, with progressive rates. |
| payment term | Tax must be paid by the last business day of the month following the sale, using code 4600. |
| Mandatory declaration | Even without profit, anyone who owns crypto assets worth R$5.000,00 or more must declare them annually. |
| Overseas or P2P operations | If they exceed R$30.000,00 per month, they must be reported monthly to the Federal Revenue Service. |
| Consequences of non-compliance | It may generate fines and other sanctions from the Federal Revenue Service. |
In Brazil, cryptocurrencies are assets and must be declared on the “Assets and Rights” form of the Income Tax return. Each crypto asset has a specific code, and the taxpayer informs the quantity, date of acquisition and amount paid in reais.
The IRS charges capital gains tax if total crypto sales in a month exceed R$35.000,00. The tax is calculated on the profit from the sale, with rates that change according to the profit.
Tax payment must be made by the last business day of the month following the sale, using revenue code 4600. Even without a sale or profit, anyone who has crypto assets worth R$5.000,00 or more must declare annually. Transactions in exchanges abroad or outside the exchanges must be reported monthly if they exceed R$30.000,00 in the month.
Anyone who does not follow these rules may receive fines and other sanctions from the Federal Revenue Service.
How will taxation on cryptocurrency gains work in 2025?
In Brazil, profits from the sale of cryptocurrencies are taxed when the total sales exceed R$35 in the same month. This rule applies to crypto assets on national exchanges.
The tax is paid monthly through the Federal Revenue Collection Document (DARF), until the last business day of the month following the sale, using code 4600. For crypto assets held abroad, the rule changes. Profits are taxed at a flat rate of 15%, regardless of the amount, and the tax is collected in the annual Income Tax.
Even transactions below R$35 per month, if made outside Brazil, are not exempt and must be declared. The taxpayer must identify the origin of the assets and make the correct calculation to avoid errors in the declaration and payment of taxes.
Do I have to declare assets in foreign accounts?
Anyone who has cryptocurrencies in foreign exchanges without a CNPJ must report these assets on a separate form in the Assets and Rights section of their Income Tax return. This applies to all cryptocurrencies held outside of Brazil.
If the taxpayer keeps digital currencies in personal wallets, he/she must indicate the type of wallet used. There are two main types: hot wallet e cold wallet.
Hot wallets are connected to the internet, facilitating access and quick transactions. Cold wallets are offline, on devices such as pen drives or paper, increasing security against digital attacks.
This form also includes other investments abroad, such as trusts and offshore, according to Law 14.754. Since December 2023, this legislation has equated crypto assets to international financial investments.
| wallet type | Features | Example |
|---|---|---|
| hot wallet | Connected to the internet, more accessible | Online Exchanges |
| cold wallet | Offline, greater security | Pen drive, paper wallet |
Providing this information correctly helps to avoid problems with the IRS and ensures tax compliance.
What are the tax rates for cryptocurrencies?
To understand how cryptocurrency taxation works in Brazil, it is necessary to understand that the tax on capital gains with cryptocurrencies varies according to the value of the profit on the sale. The rates are progressive, starting at 15% and going up to 22,5%.
The tax rate table is as follows:
| Monthly earning range (R$) | Income tax rate (%) |
|---|---|
| Until 5.000 | 15 |
| De 5.000,01 a 10.000 | 17,5 |
| De 10.000,01 a 30.000 | 20 |
| Above 30.000 | 22,5 |
Tax is only levied on the profit, that is, the difference between the purchase price and the sale price of the crypto asset. If sales are below R$35 per month, there is no need to pay tax. Even so, it is a good idea to keep records to prove the amounts in future tax returns.
In transactions involving cryptocurrency donations, the donor calculates the tax on any gains from the transfer. The recipient declares the amount received in the “Assets and Rights” tab, indicating the origin of the donation.
How to declare your cryptocurrencies in your Personal Income Tax step by step
First, you need to enter your cryptocurrencies in the form. “Goods and Rights” of the annual declaration, if the total amount acquired until December 31st exceeds R$5 thousand.
The stated value should be the purchase cost, not the current market value. Don't get this mixed up — always use what you paid for it, not what it's worth today.
In the tab, choose the group “08 – Cryptoassets” and the correct code for the asset:
| Dress | Type of Cryptoasset |
|---|---|
| 01 | Bitcoin (BTC) |
| 02 | Other cryptocurrencies (altcoins) |
| 03 | Stablecoins |
| 10 | NFTs (Non-Fungible Tokens) |
| 99 | Other crypto assets |
In the “Discrimination” field, detail the quantity purchased, the type of crypto asset and the custodian’s details (name and CNPJ).
If you use a private wallet, please mention the type, such as Ledger or Trezor. For coins received through mining or rewards, the purchase value reported is zero.
In addition to the annual declaration, inform the IRS of monthly transactions over R$30. This is the investor's responsibility, unless you trade through a Brazilian brokerage firm, which already sends the data. If the IRS shows pre-filled data with zero value, correct it manually. This avoids problems of inconsistency in your declaration.
Is there an income tax exemption for cryptocurrencies?
The Income Tax exemption on cryptocurrency earnings is valid when the total sales in the month do not exceed R$35, as long as the transactions are made by Brazilian brokers. This is an important detail for small investors looking to understand how cryptocurrency taxation works in Brazil.
In this case, the profit is not subject to taxation. It seems simple, but there is a catch: if you operate through a platform but abroad, the exemption does not apply, regardless of the amount. The taxpayer must pay the tax due even if the monthly sales are low. You can't escape it just because you sold little abroad.
Even with exemption, it is mandatory to declare crypto assets in Income Tax whenever the acquisition value of each asset is equal to or greater than R$5 until December 31 of the base year. This information is in the “Assets and Rights” tab.
Table: summary of exemption and declaration rules:
| Condition | Income Tax Exemption | Obligation to declare |
|---|---|---|
| Sales up to R$35 per month via Brazilian broker | Yes | Yes |
| Sales at a foreign brokerage | No | Yes |
| Crypto assets purchased ≥ R$5 until 31/12 | Does not apply | Yes |
The exemption only applies to net gains, never to your total cryptocurrency assets. Be careful with the amounts and platforms you use, it's easy to get confused.
Cryptocurrency taxation in Brazil: how it works: conclusion
Cryptocurrency taxation in Brazil still faces several challenges. This is because there is no complete regulation so far. Even so, investors must comply with tax obligations. Ignoring these rules can cause problems with the IRS.
The declaration is mandatory if the total value of cryptocurrencies exceeds certain limits, such as R$5 per type of asset. The tax also applies to monthly earnings above R$35.
If you invest in cryptocurrencies, it is worth seeking specialized support. The market changes quickly and legislation can also change from one moment to the next. Understanding the limits and how taxation works helps ensure greater transparency. This contributes to a safer environment for those who invest in digital assets.
