In a bid to streamline revenue collection, Brazil has imposed a 17.5% flat tax on cryptocurrency gains, scrapping prior exemptions for small transactions. The policy, enacted under Provisional Measure 1303, took effect on June 12.
Previously, trades under 35,000 reals ($6,300/month) were tax-free, while larger deals faced progressive rates (15%-22.5%). The new system simplifies compliance but raises costs for retail investors—a trade-off that may deter small-scale trading while benefiting high-volume players.
The shift reflects Brazil’s broader effort to regulate digital assets and align crypto taxation with traditional financial markets.
