On January 1, 2024, the Brazilian Senate passed a law capping cryptocurrency revenue from overseas exchanges at 15%.
The Brazilian Senate has approved new income tax rules, which, beginning in 2024, would levy a 15% tax on profits made from cryptocurrency housed on international exchanges.
This decision marks a significant change in Brazil’s policy on cryptocurrency taxes, which will take effect on January 1, 2024. The current tendency towards controlling digital assets is consistent with this.
After completing its journey through Brazil’s legislative chambers, the law now needs President Luiz Inácio Lula da Silva’s stamp of approval. His government pushed for this bill modification, which shows how seriously Brazil is taking the economic importance of cryptocurrencies.
Those Brazilians who make more than $1,200 (6,000 reals) each year from cryptocurrency exchanges abroad would be affected. This tax rate is in line with what is paid to money kept domestically, which is worth noting. But for profits accessible before December 31, 2023, a transitional tax rate of 8% is in place. After that, it will go up to 15%.
The scope of this law is widened to include “exclusive funds” (investment funds with a single shareholder) and international corporations involved in Brazil’s banking industry, in addition to private investors. The government’s determination to use the cryptocurrency industry to boost the economy is shown by their income goal of $4 billion (20.3 billion Brazilian reals) by 2024.
Senator Rogério Marinho blamed the government’s incompetence for the new tax and voiced his disapproval. Notwithstanding this, the Brazilian central bank has increased its oversight of companies that supply virtual assets. This is similar to the way crypto-based securities are supervised by the Comissão de Valores Mobiliários.
Concerns about possible tax avoidance and the meteoric rise in popularity of cryptocurrencies have prompted these governmental crackdowns.
At the same time that it was being praised as a crypto-friendly country, Thailand has simultaneously declared intentions to tax cryptocurrency trading profits earned abroad. Along with a countrywide airdrop, this program is a component of the government’s larger plan to stimulate the economy.
Cryptocurrency dealers and Thai citizens who trade on overseas stock exchanges are the focus of a new regulation from the Thai Revenue Department. Income earned outside of the country is subject to personal income tax.
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