According to the information obtained, the House of Representatives also approved the bill, and is expected to be approved by President Luiz Inácio Lula da Silva, who initiated the new income tax regulation.

According to the bill approved by the Senate, Brazilians who earn income over $1,200 (approximately 6,000 Brazilian reais) from abroad will be taxed from January 1, 2024. With this change, foreign and domestic cryptocurrencies are subject to the same tax rate. The tax on money earned before 2024 will be applied when the fund owner reaches the current money. Profits from the funds available until December 31st will be taxed at 8%.

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The bill is expected to cover “special funds”, i.e., investment funds with a single shareholder, and foreign companies operating in the Brazilian financial market. The government plans to generate 20.3 billion Brazilian reais (approximately $4 billion) in tax revenue in 2024 with this practice. However, Senator Rogério Marinho opposed this bill, saying, “Government introduces a new tax because it is a bad manager.”

The President of the Central Bank of Brazil, Roberto Campos Neto, stated in September that they intend to adopt stricter regulations on cryptocurrencies. Campos Neto said this decision was made due to the rapid rise in the popularity of cryptocurrencies and the possibility of tax evasion.

In June, the Brazilian Central Bank acquired regulatory authority over digital asset service providers.

The regulation of crypto-based securities in Brazil is carried out by the Securities and Exchange Commission, which serves a similar function to the United States Securities and Exchange Commission.

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