Brazil Terminates Crypto Tax Exemptions, Introducing 17.5% Capital Gains Tax
Brazil has implemented a comprehensive revision of its cryptocurrency taxation framework. The nation has abolished its long-standing tax exemptions for minor crypto asset investors. A flat 17.5% capital gains tax will now be applied to all earnings from digital asset transactions.
Starting from June 12, 2025, every digital currency transaction – regardless of its worth or volume – will incur a 17.5% capital gains tax.
Evidently, Brazil’s updated tax regulations are part of Provisional Measure 1303, a governmental strategy aimed at maximizing revenue from financial markets.
Brazil targets retail crypto investors: tax exemptions eliminated, a flat 17.5% tax enacted
Brazil has revoked tax exemptions for small crypto investors, now enforcing a flat 17.5% tax on all capital gains. This initiative is part of the government’s strategy to raise revenue from… pic.twitter.com/gUJ4K1k40w
— Atlas21 (@Atlas21_news) June 16, 2025
According to reports from local outlets, “The Brazilian government will abolish the exemption on profits of up to R$35,000 generated through cryptocurrencies and will establish the tax at 17.5%, payable under Income Tax. This new regulation is included in a recent Provisional Measure wherein the government mandates tax increases on financial investments to bolster revenue.”
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Brazil Discontinues Monthly Exemption
The prior exemption permitting Brazilians to sell up to 35,000 reais (approximately $6,300) per month without taxes has been abolished.
Now, all crypto profits are taxable. “The 17.5% rate will be universal and will impact nearly all financial investments. Fixed income securities, previously exempt from income tax, will now face a 5% rate on profits,” reported local announcement.
Significantly, these tax reforms follow attempts by the government to enhance the collection of the Financial Transaction Tax (IOF).
Even with diminished media attention, digital currency adoption is on the rise in various nations. India, Brazil, and South Africa demonstrate the most promising growth trends. #infographic by @StatistaCharts via @antgrasso #Crypto #Cryptocurrencies #blockchain #web3 pic.twitter.com/3Eukg2RUe0
— Antonio Grasso (@antgrasso) June 13, 2025
Interestingly, the nation is also pursuing multiple other legislative initiatives related to cryptocurrencies. One such proposal, introduced in March this year, aims to permit employees to receive a portion of their salaries in cryptocurrency.
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Key Points
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The previous tax exemption allowing Brazilians to sell up to 35,000 reais (around $6,300) monthly without tax has been abolished. Henceforth, all crypto profits will be taxed.
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The new tax encompasses assets held in self-custody wallets and digital assets stored abroad, effectively closing loopholes and expanding the tax base.
The post Brazil Revokes Crypto Tax Exemptions, Will Now Impose 17.5% Capital Gains Tax appeared first on 99Bitcoins.
