How to Pay Taxes on Crypto Income in Brazil: Your Complete 2024 Guide

Understanding Crypto Tax Obligations in Brazil

As cryptocurrency adoption surges in Brazil, understanding tax obligations is crucial for investors. The Brazilian Revenue Service (Receita Federal) classifies cryptocurrencies as “financial assets,” making them subject to capital gains tax under Normative Instruction 1,888/2019. Whether you’re trading Bitcoin, earning staking rewards, or receiving crypto payments, this guide breaks down everything you need to know about complying with Brazil’s crypto tax laws.

How Crypto Income is Taxed in Brazil

Brazil taxes cryptocurrency under two primary frameworks:

• Capital Gains Tax: Applies to profits from selling or exchanging crypto. Rates range from 15% to 22.5% based on monthly gains
• Income Tax: Covers crypto earned through activities like mining, staking, or freelance payments, taxed at progressive rates up to 27.5%

Key exemption: Monthly sales under BRL 35,000 are tax-free. Losses can offset gains within the same month.

Taxable Crypto Transactions in Brazil

You must report these common crypto activities:

• Selling cryptocurrency for BRL or foreign currency
• Trading between cryptocurrencies (e.g., BTC to ETH)
• Using crypto to purchase goods/services
• Receiving crypto as payment for work
• Earning staking rewards or mining income
• Receiving airdrops or forks

Step-by-Step Tax Calculation Guide

Follow this process to determine liabilities:

1. Track Acquisition Cost: Record purchase price + fees for each asset
2. Calculate Capital Gains: (Selling Price – Acquisition Cost) – Fees
3. Apply Tax Rates:
   • 0% if monthly sales ≤ BRL 35,000
   • 15% on gains up to BRL 5 million
   • 17.5% on gains between BRL 5-10 million
   • 20% on gains between BRL 10-30 million
   • 22.5% on gains exceeding BRL 30 million
4. Deduct Allowable Losses

Example: You sell BRL 40,000 worth of Bitcoin purchased for BRL 25,000. Taxable gain = BRL 15,000. At 15% rate, tax due = BRL 2,250.

Reporting and Payment Process

Compliance involves three key steps:

1. Monthly Declaration: File Capital Gains Tax (GCAP) via the Receita Federal portal by the last business day of the following month
2. Generate DARF: Create the Federal Tax Collection Document with correct crypto transaction codes
3. Payment: Settle dues by the 10th day of the second month following the transaction

Tip: Use tax software like Koinly or Contabilizei to automate calculations and DARF generation.

Consequences of Non-Compliance

Failing to report crypto income can trigger:

• Fines up to 150% of owed taxes
• Monthly interest of 1% + SELIC rate
• Legal prosecution for tax evasion
• Account freezes by exchanges under COAF regulations

Pro Tips for Crypto Tax Compliance

• Maintain detailed records of all transactions (dates, values, wallet addresses)
• Use portfolio trackers like CoinTracking or BitDelta
• Consult a crypto-savvy contador (accountant) for complex cases
• Monitor regulatory updates through Receita Federal’s official channels

Brazil Crypto Tax FAQ

Do I pay tax if I hold crypto without selling?

No. Brazil only taxes disposal events (selling, trading, spending) or income generation.

How are crypto-to-crypto trades taxed?

Each trade is a taxable event. You must calculate gains in BRL at transaction time and pay capital gains tax.

Is there a tax exemption for small investors?

Yes. Monthly sales under BRL 35,000 are exempt from capital gains tax regardless of profit amount.

How do I report lost or stolen crypto?

Document the incident with police reports and exchange communications. Losses can offset gains if properly evidenced.

Are NFTs taxed differently?

Currently treated like other cryptocurrencies. Sales profits follow capital gains rules, while NFT creation income is taxed as service revenue.

Disclaimer: Tax regulations evolve. Consult a qualified tax professional before filing.