Brazil puts a flat -tax of 17.5 % on encryption profits, which ends the exemption for smaller investors

Brazil canceled a long -term tax exemption for cryptocurrency gains, with a new temporary measure (Mp 1303), Imposing a 17.5 % tax on all encryption profits for individuals.

Previously, individuals who sell up to 35,000 dollars (about $ 6,300) were exempt from encryption per month of taxes. Before the change, the gains on the above gains were gradually imposed, reaching 22.5 % for folders that exceed $ 5.4 million.

The new rule replaces this system with flat tax, which means that smaller investors will face higher tax burdens while their senior holders may see their bills shrink, which is the local news port. A bitcoin portal Reports.

The tax will be applied regardless of where the assets are held, including in external stock exchanges or self -monopoly portfolios. The losses can be compensated, but only within a window that rolls five quarters, a base that will become tougher begins in 2026.

The government says reform aims to enhance tax revenues after the proposed decline in IOF financial transactions tax, which attracted industry and criticism in Congress.

Besides Crypto, the new procedure affects fixed -income and betting investments online, as the previous one now incurred a fixed 5 % tax on profits and recent taxes on the operator’s revenues increased from 12 % to 18 %.