Brazil proposes new crypto tax bill, plans to tax it as stocks and capital instruments rather than commodities

Brazil is planning to change the way cryptocurrencies are taxed. A new bill dealing with personal investment tax will propose changing the tax status of cryptocurrencies, allowing them to be taxed at a variable rate like stocks and capital instruments. Under the proposal, which will be submitted to Congress in the coming days, crypto investors will be subject to paying 15% of the income from crypto businesses. Today, crypto gains are taxed as commodities and must pay capital gains tax based on the volume of transactions, with a threshold of 15% for transactions below 5 million reais (990,000 US dollars) and 22.5% for transactions above 30 million reais (nearly 6 million US dollars), with lower rates in the middle. This tax system applies to cryptocurrencies and NFTs traded by investors who trade more than 35,000 reais (nearly 7,000 US dollars) per month on all registered platforms. This value is higher than the lower limit for stocks, which is currently set at 20,000 reais (nearly 4,000 US dollars). However, it is not yet certain whether the new bill will change these restrictions and allow crypto investors to be tax-free on small cryptocurrency transactions. The change in the law is expected to be implemented in 2025, but Congress needs to pass the law, which has been in the works for more than a year. (Bitcoin.com)