BTCC / BTCC Square / Global Cryptocurrency /
Brazil Imposes Flat 17.5% Tax on Crypto Profits, Ending Exemption for Small Investors

Brazil Imposes Flat 17.5% Tax on Crypto Profits, Ending Exemption for Small Investors

Published:
2025-06-14 16:21:24
14
1

Brazil has eliminated a longstanding tax exemption for cryptocurrency gains, introducing a flat 17.5% levy on all profits under provisional measure MP 1303. The move marks a significant shift from the previous system, which exempted monthly sales below R$35,000 (~$6,300) and applied progressive rates up to 22.5% for large-scale transactions exceeding $5.4 million.

The new regime disproportionately impacts retail investors, who now face higher effective rates, while institutional players may benefit from reduced tax burdens. Jurisdictional boundaries are irrelevant—the tax applies uniformly to assets held on foreign exchanges or in self-custody wallets. Loss offset provisions remain but tighten in 2026, restricting claims to a five-quarter rolling window.

This fiscal overhaul follows the government''s retreat from a controversial IOF tax hike proposal. The measure also targets fixed-income investments (now taxed at 5%) and online gambling operators (facing increased levies from 12% to 18%). Revenue authorities aim to bolster state coffers amid growing cryptocurrency adoption in Latin America''s largest economy.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users