Finxpd
    Facebook Twitter Instagram
    Finxpd
    • Home
    • Education
      • Cryptocurrencies
      • Stocks
      • Forex
      • Commodities
      • Economies
      • Investing
      • Technologies
      • Career Planning
    • Financial
      • Credit cards
      • Banking
      • Insurances
      • Retirement Planning
      • Taxes
      • Brokers
      • Regulations
      • Funds & Loans
    • Reviews
      • Popular Brokers
      • Popular Savings Accounts
      • Popular Credit Cards
      • Popular Personal Loans
      • Popular Student Loans
      • Popular Stocks
      • Popular Low Spread Brokers
      • Popular Insurances
    • Comparison
      • Broker
      • Stock Investment
      • Cryptocurrency Exchanges
      • Financial Advisors
    • About us
    • Contact
    Finxpd
    Home » Crypto Tax on Similar Trading is Now Forced In Brazil
    Crypto Tax in Brazil
    Education

    Crypto Tax on Similar Trading is Now Forced In Brazil

    May 26, 2022Updated:September 16, 20223 Mins Read25 Views
    Share
    Twitter LinkedIn

    The Brazilian Federal Revenue wants investors to pay to pay Crypto tax on trading earnings even if there is no exchange for the country’s national currency.

    CASSIO GUSSON – COINTELEGRAPH

    Brazil’s Federal Reserve (RFB) has announced that Brazilian investors in the crypto-asset market must pay income tax on transactions. This Crypto Tax involves the like-kind exchange of cryptocurrencies, such as Bitcoin (BTC) for Ethereum (ETH).

    The announcement was the conclusion of a consultation with the regulator by a citizen of the country. The organization produced an opinion at the end of last year claiming that trading between cryptocurrency pairs is taxable even if no conversion to real (Brazil’s national currency) occurs.

    Although there is no capital gain in fiat money when exchanging one crypto asset for another. It does state that there is still a duty to pay taxes on the future profit:

    “The capital gain calculated on the sale of cryptocurrencies, when one is directly utilized in the acquisition of another, is taxed by the individual’s income tax, even if the acquisition cryptocurrency has not previously been changed into reais or another fiat currency.”

    However, it should be emphasized that trades do not require all crypto investors to declare their trades. Consequently, the regulator specified that only investors who trade more than BRL 35,000 (about $7263.67) must pay income tax.

    “I consider the Federal Revenue proposal is illegitimate and has requested that the National Congress suspended immediately the determination.”

    Federal deputy Kim Kataguiri (Podemos, or the National Labor Party)

    According to Kataguiri, the law on the calculation and payment of IRPF (Individual Income Tax) specifies that there will only be capital gain in exchanges that involve the currency (articles 134 and 136 of decrees 9580 and 2018), which is not the case when dealing like-kind crypto assets.

    “There is no trade involving currency in the exchange of crypto assets; one crypto-asset exchange for another, thus there is no equity rise,” Kataguiri stated.

    According to article 110 of the Tax Code, tax law cannot change the definition of private law institutes. Therefore, the Federal Revenue does not have the authority to change an understanding of the Tax Code.

    “If the Union wishes to tax the trading of crypto-assets, it will require legal innovation. Even in this situation, it may raise questions about the new law’s constitutionality. What we have is a fundamentally illegal interpretation by the tax authorities, which obviously exceeds their regulatory authority ” explained Kataguiri

    Since 2016, the authorities force Brazilian cryptocurrency investors to report their crypto assets. The country’s Federal Revenue Service issued Normative Instruction 1888 in 2019, which mandates that all national exchanges record all cryptocurrency transactions between customers to the authority on a monthly basis.


    Related Articles:

    • Minting an NFT: A Simple Guide to Creating It
    • Crypto Wash Sales: One Easy Way To Lower Your Taxes

    Read more: Cryptocurrencies

    Source: COINTELEGRAPH

    Cryptocurrencies
    Share. Twitter LinkedIn

    Related Posts

    Dark Pools: Interesting Facts You Should Know

    January 26, 2023

    7 Best Growth ETFs to Buy for 2023

    January 25, 2023

    9 Easy Ways to Reduce Overhead Costs

    January 23, 2023

    Overhead Costs: An Important Cost Representing the Firm’s Expenses

    January 16, 2023
    POPULAR

    Yield Farming VS Staking: Which Is the Better Long-Term Investment?

    June 23, 2022

    The Differences between Investment and Speculation Investors Must Know

    June 8, 2022

    What is Cryptocurrency? (New Edition 2022)

    June 7, 2022
    Risk Disclaimer: Finxpd will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of Finxpd or its employees.

    Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review.

    Menu
    • Home
    • Education
    • Financial
    • Reviews
    • About us
    Top Insights
    Good APR for a Credit Card: The Important Thing to Know before Applying
    January 31, 2023
    Nationwide Pet Insurance Review : One of America’s Oldest and Largest
    January 27, 2023
    Twitter LinkedIn YouTube TikTok
    • Home
    • Education
    • Financial
    • Reviews
    • About us
    Copyright © Finxpd 2023. All Rights Reserved

    Type above and press Enter to search. Press Esc to cancel.