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Brazil Ends Crypto Tax Exemption: 17.5% on All Winnings!
On June 12, 2025, Brazil removed the tax exemption for small crypto profits and introduced a uniform tax rate of 17.5%. This measure aims to generate additional income from the financial market and affects all investors.
Brazil Ends Crypto Tax Exemption: 17.5% on All Winnings!
Brazil has removed the tax exemption for small crypto profits and introduced a uniform tax rate on capital gains from digital assets. Since June 12, 2025, investors have now had to pay a flat rate of 17.5 percent on their profits from cryptocurrencies, as [btc-echo.de] reports. This measure is part of Provisional Measure 1303, which aims to generate additional revenue through taxation of the financial market.
Previously, winnings of up to 35,000 Brazilian reais (around $6,300) per month were exempt from taxation. Winnings exceeding this amount were taxed progressively, with rates ranging from 15 to 22.5 percent for winnings over 30 million reais. Under the new regime, all investors, regardless of transaction size, must now pay taxes, which particularly affects small investors. While smaller investors are confronted with a higher tax burden, wealthy individuals could potentially pay less taxes, as [it-boltwise.de] adds.
Details about the new tax regulation
Taxation occurs quarterly and there is an opportunity to recover losses from the last five quarters. From 2026, however, the time window for deducting losses will be narrower. In addition to the new regulations for cryptocurrencies, the provisional measure also affects fixed-interest instruments, which are now taxed at 5 percent. The taxation of betting winnings was increased from 12 percent to 18 percent.
Another key point is that the tax base now also includes crypto assets in self-managed wallets and foreign crypto holdings. Large transactions over 5 million reais, which were previously taxed at 17.5 to 22.5 percent, are now also subject to the new regulations. These sweeping changes come after a failed proposal to increase the financial transaction tax (IOF) and represent a comprehensive reform of crypto taxation.
An additional law allows employers in Brazil to pay their employees up to 50 percent of their salary in cryptocurrencies, with full crypto payments only permitted under certain conditions for foreign workers or contractors. All payments in cryptocurrencies must also be made at the official exchange rates of authorized institutions.