The IRS began claiming discrimination against cryptoassets valued at BRL 5,000
It is more for people to invest in cryptocurrencies and digital assets such as Bitcoin, Ethereum and NFT (non-fungible token). They are called cryptoassets and because they are one of the most profitable hedge funds, they are now advertised in the Income (IR), at a reasonable price and the investors income, according to the Federal Income.
There is still no law in Brazil, crypto assets get their own numbers in the “Products and Regulations” form in 2019. Until then it has been declared that “other products and rules “, they received a special section in the income statement. This year, the IRS established rules for non-fungible tokens (Non-Fungible Tokens or NFT), an encrypted type of digital signature.
Investigate the significant uncertainties of the collection of crypto currency in the tax return:
When to announce
According to Federal Revenue, any crypto asset with a purchase price equal to or greater than BRL 5,000 representing a taxpayer on December 31 of the previous year shall be declared. . Under this amount, it does not need to be advertised.
This limit of BRL 5,000 applies to a group of crypto currencies. Thus, the taxpayer with BRL 5,000 in bitcoin and BRL 3,000 in other virtual assets, for example, only has to declare the first asset.
what numbers are used
This year, the Federal Revenue Service changed the rules for declaring assets in the Revenue, restructuring assets in the group. In the “Products and regulations” form, the taxpayer should select the category “8 – cryptoactive”. Then you need to select the following numbers:
- Code 01: Bitcoin cryptocurrency – BTC
- Code 02: other cryptocurrencies, called altcoins. Examples: Ether (ETH), Ripple (XRP), Bitcoin Money (BCH) and Litecoin (LTC)
- Code 03: crypto assets are called stabilitycoins. Examples: Tether (USDT), USD Coins (USDC), Brazilian Digital Token (BRZ), Binance USD (BUSD), DAI, True USD (TUSD), Gemini USD (GUSD), Paxos USD (PAX), Gold Paxos (PAXG)) etc.
- Code 10: crypto assets called Non-Fungible Tokens (NFT)
- Code 99: other crypto assets. Encompasses tokens, digital assets are not considered cryptocurrencies
how to publish
Cryptoassets follow a similar standard for real estate, automobiles and Certificate of Deposit (CDB). The price to be reported in the report is the amount owed in reais by the investor at the time of receipt of the digital asset, and must be renewed annually. Only on the sale of this property, the taxpayer must adjust the value and calculate the tax according to the income.
When are taxes paid on cryptocurrencies?
You only have to pay Tax Income if you exchange more than BRL 35,000 in crypto assets per month. This restriction includes all digital resources and operations in each country.
Thus, sellers of BRL 10,000 in bitcoin, BRL 3,000 in tether and BRL 5,000 in ethereum in one 30-day period, in many parts of the world, will not be charged anything, because the value of the purchase does not exceed BRL. 35,000 ib. However, all sellers of BRL 20,000, BRL 5,000 and BRL 12,000 in the same amount per month will be taxed on the profits.
Even in situations where they are exempt from IR payment of profits, the taxpayer must declare, in the form of “Assets and Rights”, that crypto assets are that the received value of the digital asset is equal to or greater than BRL 5,000.
The Entrepreneur must file another declaration at the Federal Revenue Service Virtual Service Center (e-CAC), when doing business – individually or jointly – more than BRL 30,000 per month with foreign (virtual brokerages) exchanges or unused no broker. More information about these announcements can be found in this guide prepared by the government.
What is the cost?
The price is levied only in revenue, not in the full cost of the crypto asset. The benefits are taxed as follows:
Income / Cost
- Less than BRL 5 million: 15%
- From BRL 5 million to BRL 10 million: 17.5%
- From BRL 10 million to BRL 30 million: 20%
- More than BRL 30 million: 22.5%
How income tax is paid
The procedure is similar to the payment of income with different income (such as investment in stock exchange). The trader himself must count the monthly income with crypto-assets, publish the Federal Revenue Collection Document (Darf), calculate and pay taxes. The procedure must be performed monthly if the cost of the consultation – together – exceeds BRL 35,000.
After the declaration of Darf, the taxpayer has until the last working day of the month after the tax exchange. The data can be downloaded and typed into the Siscalweb system, on the Federal Revenue website, without having to download a program that produces the curriculum.
How to report income
In addition to taxable income, the taxpayer must declare the income (profits from interest on property) to the tax authorities. The process can be completed through the Capital Gains program (GCAP), which can be downloaded from the Federal Revenue website. The results reported in the program are referred to in the Income Statement for the next year.
For this year’s tax return, the taxpayer must download the GCAP 2021 program, select the “Export to IRPF” option and save the data on a computer. Then, you need to go to the IR generator program, go to the “Capital Gains” tab and import the data stored in the “GCAP Import” option.
(With Brazil Office)