Tax coup from Brazil to crypto: Exemption is lifted, a fixed ratio has arrived
Brazil has abolished the tax exemption for crypto earnings. 17.5 %fixed ratio was replaced by all investors. Self-Custody and assets in foreign wallets will now be taxed. The new regulation entered into force on 12 June.
The new regulation may reduce the tax burden for large investors while leaving small investors with higher tax.
📍 The Brazilian government has made a radical change in the tax system imposed on digital assets. Temporary measures, which came into force on June 12, 2025, have been abolished by the tax exemption in crypto earnings with 1303 (Medida Provisória 1303) and a fixed tax rate of 17.5 %was replaced.
💼 What has changed?
Old System:
The monthly sales of 35,000 real (approximately $ 6,300) were tax exempted.
The earnings above this amount were taxed between 15 %and 22.5 %with increasing rate of taxation.
New System:
Single Ratio for All Investors: 17.5 %
Whether you earn $ 1,000 or $ 1 million - the same rate of tax will be applied.
Tax assessments will be held for a quarter.
⚖️ Who won, who lost?
🔻 Bad news for small investors:
Tax will now be paid in small volume purchases and sale. The threshold of exemption is completely lifted.
🟢 Advantageous for wealthy investors:
In the old system, 5 million transactions are taxed up to 22.5 %, while only 17.5 %will be paid. This means tax reduction for large transactions.
🌍 Self-Custody and international crypto assets were also included
The new arrangement includes not only assets in the stock markets, but also the following:
Assets held in self-Custody wallets
Crypos stored in stock exchanges or cold wallets abroad
The profit-loss balance can be deducted for the last five quarters, but this time will be shortened from 2026.
💵 Not only crypto: Tax came to fixed income instruments and betting revenues
Tax scope was expanded:
Agriculture (LCA) and Real Estate (LCI) Credit products: 5 %
To securities such as CRIS/CRAS: 5 %
Tax on betting earnings: 12 %→ 18 %
These changes were made in line with the government’s goal of generating more income from the financial market.
📜 What is the stage of salary payment with Bitcoin?
The bill presented in March 2025 is still in the evaluation stage:
Employers are expected to be able to pay up to 50 %of their employee salaries.
Paying 100 %crypto will only be possible for foreign employees and independent contracts.
All crypto payments will be calculated on official exchange rates authorized by the Brazilian Central Bank.
