Brazil has introduced a flat tax rate of 17.5% on all cryptocurrency capital gains, eliminating the previous exemption for small-scale transactions.
The change, enacted through Provisional Measure 1303, took effect on June 12 as part of the government's broader strategy to increase revenue from financial markets.
Previously, Brazilian taxpayers were exempt from income tax on cryptocurrency sales of less than 35,000 Brazilian reais (approximately $6,300) per month.
Higher gains were taxed progressively, with rates ranging from 15% to 22.5% for transactions exceeding 30 million reais.
Under the new system, all investors, regardless of trading volume, will pay the same tax rate of 17.5%.