Brazil Sets Flat 17.5% Tax on Crypto Gains, Removing Small Trader Exemption
Brazil has enacted a new tax regime on cryptocurrency profits, replacing its progressive structure with a flat 17.5% rate under Provisional Measure 1303. The policy ends a previous exemption that allowed individuals to avoid capital gains taxes on monthly crypto sales under R$35,000 (roughly $6,300).
The overhaul applies to all crypto holdings, including those stored on foreign exchanges or self-custody wallets, marking a significant tightening of the country’s digital asset tax rules. While investors can still write off losses, deductions are now restricted to a five-quarter window, a rule set to become stricter in 2026.
The new tax framework is expected to increase revenue, coming on the heels of the government’s decision to abandon a controversial hike to the IOF financial transaction tax following industry pushback.
Alongside crypto, the measure imposes a 5% flat tax on fixed-income earnings and raises the tax rate on online betting operator revenues from 12% to 18%.
The changes mark a broader effort by Brazil to standardize taxation across fast-growing sectors while capturing revenue from emerging digital markets.
