Brazil Implements Flat Crypto Tax Rate in New Reforms
- On June 12, 2025, Brazil introduced a flat 17.5% crypto tax on all capital gains under Provisional Measure 1303.
- The new tax applies to assets held on local or offshore exchanges, in self-custody wallets, and across decentralized finance (DeFi), non-fungible tokens (NFTs), and staking platforms.
- Previously, trades up to 35,000 reais/month were exempt from crypto tax, benefiting small investors.
- Medium-scale investors now face a higher tax rate of 17.5%, but high-net-worth traders benefit from a reduced rate compared to the previous maximum of 22.5%.
- The reform is part of a broader Brazilian tax overhaul aimed at expanding the tax base across both traditional and digital assets.
Brazil’s new cryptocurrency tax law replaces the progressive model with a flat rate that affects all digital asset activities, including DeFi and NFTs, impacting small investors who previously enjoyed exemptions.
While medium-scale investors face higher taxes under the new regime, high-net-worth traders could see savings due to the capped rate at 17.5%. ((Source)
