Crypto Tax Exemption Period Comes to an End

Until now, residents in Brazil who sold up to 35,000 Brazilian reals (approx. $6,300) in crypto assets per month were exempt from income tax. Under the new regulation, all gains—regardless of transaction volume—are now subject to a 17.5% flat rate.

This change means higher tax burdens for smaller investors, while some high-net-worth individuals may actually benefit. Previously, trades above 5 million reals were taxed up to 22.5%, but with the flat rate, many large investors will now pay less.

Cold Wallets and Offshore Crypto Holdings Are Now Taxable

The reform goes beyond just trading volume. Crypto stored in self-custody wallets and held in foreign exchanges will also be included in the tax regime.

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Taxes will be assessed quarterly. Investors are allowed to deduct losses from the previous five quarters, although this loss window will narrow starting in 2026.

Other Financial Instruments and Betting Revenue Also Hit

The changes also impact traditional financial products. Fixed-income securities that were previously tax-exempt—such as Agribusiness and Real Estate Credit Letters (LCAs and LCIs) and Receivables Certificates (CRIs and CRAs)—will now be taxed at 5% on profits.

Meanwhile, the tax on betting revenue has been raised from 12% to 18%.

Proposal to Allow Bitcoin Salary Payments in Brazil

Back in March, Brazilian lawmakers proposed a bill that would allow employers to pay up to 50% of employee salaries in crypto, including Bitcoin.

Full crypto salary payments would only be allowed for foreign workers or independent contractors, and only under conditions regulated by Brazil’s central bank. All crypto salary payments must use official exchange rates from central bank-authorized institutions.

Freelancers will be allowed to receive full payments in digital assets if contractually agreed. Supported currencies include Bitcoin, Ethereum, USDT, and USDC.

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New Bill in Brazil Regulates Crypto Salary Payments

Brazilian lawmakers are considering a new bill that would officially authorize employers to pay salaries using cryptocurrencies like Bitcoin.

Federal Deputy Luiz Philippe de Orleans e Bragança has introduced a bill proposing the regulation of crypto payments for wages, remunerations, and labor benefits.

Filed on March 12, the PL 957/2025 bill legalizes voluntary and partial salary payments in cryptocurrencies like Bitcoin (BTC), but requires employers to pay part of the salary in Brazilian real.

A member of Brazil’s former royal family, Orleans-Bragança is serving his second term as a federal deputy from São Paulo and supports the Truth Social social media platform owned by U.S. President Donald Trump.

Full Crypto Payments Banned, Capped at 50%

The proposed bill prohibits employers from paying salaries entirely in cryptocurrency, capping such payments at 50%.

“Salary payments in virtual assets are prohibited,” but exceptions can be made for expatriate or foreign employees under the regulations of the Central Bank of Brazil.

The bill also allows full crypto payments for “independent service providers,” subject to specific contractual provisions.

Additionally, the portion of the salary paid in Brazilian real must be at least 50% of the total salary.

The conversion of the amount paid in crypto must follow the exchange rate established by an institution authorized by the Central Bank of Brazil.

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