Brazil: Bitcoin taxes fall upon investors, save for consumers

Wednesday 9 April 2014 11:41 CET | News

The Receita Federal, Brazil’s tax authority, has established that Bitcoin trade, which is not considered a currency, falls under taxation for investors but the consumers are exempted from the regulation, reports.

Brazil considers digital currencies as financial assets, with the Receita Federal imposing a 15% capital gains tax at the time of sale.

However, users selling coins with a value of less than USD 16,000 (BRL 35,000) will not have to pay the tax which in other words, Brazilian Bitcoin users need not calculate capital gains taxes when making small consumer purchases.

The Receita Federal is also requiring annual account declarations from those who possess more than USD 453 (BRL 1,000) in digital currency holdings.

The rules outlined by the tax authority fit within the current framework established by the Brazilian law. Furthermore, the government has said that it does not need to issue regulations concerning digital currencies trade.

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Keywords: Brazil, Bitcoin, tax, investors, consumers, regulation, digital currency, crypto-currency
Categories: Payments & Commerce
Countries: World
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