Brazil Imposes Flat 17.5% Tax on All Crypto Gains, Ends Previous Thresholds

Published on June 11, Provisional Measure 1,303 revokes the earlier tiered system that taxed crypto gains based on thresholds, where only amounts exceeding 35,000 reais (approximately $6,320) were taxable. Under the former system, gains were taxed progressively—from 15% on earnings under 5 million reais ($900,000) up to 22% on volumes above 30 million reais ($5.4 million).

The new policy applies universally to all income from cryptocurrency holdings and trading, whether the assets are located in Brazil or abroad. It includes not only direct trading profits but also any financial operations involving digital assets used for payments or investments.

The government stated that the rule covers “all income, including net gains, obtained from transactions with virtual assets, including financial arrangements with virtual assets that are the digital representation of value negotiated or transferred by electronic means.”

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The move is expected to expand the Brazilian tax base by closing previously exploitable gaps and bringing uniformity to crypto taxation. However, it also raises concerns among crypto investors and industry participants who now face higher compliance obligations regardless of the size or source of their digital asset activity.

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