Brazil may charge up to 15% tax on citizens’ overseas cryptocurrency exchange income

According to new income tax rules passed by the Brazilian Senate on November 29, local citizens may soon be required to pay up to 15% tax on income from cryptocurrency holdings on overseas exchanges. The bill has passed the House of Representatives and is expected to be approved by President Luiz Inácio Lula da Silva. According to the bill, starting from January 1, 2024, any citizen whose income exceeds USD 1,200 (BRL 6,000) from transactions outside Brazil will be taxed; income earned before December 31 of this year will continue to be taxed Taxation is based on the current tax rate of 8%. The bill will also affect “captive funds” – investment funds with a single shareholder – as well as foreign companies active in Brazil’s financial markets. The government hopes to raise $4 billion (Br20.3 billion) through the move in 2024. (Cointelegraph)