Brazilian taxpayers will have to communicate the operations carried out in virtual currencies that exceed the 30mila real

Brazilian taxpayers will have to report transactions made in virtual currencies that exceed the 30mila real - Brazil and cryptocurrencies

Il Brazil it seems intent on giving space to cryptocurrencies, also in light of the potential already identified by many administrations and used for various services. At the same time, however, it does not hide the desire to check the sector to avoid any abuse. To demonstrate this attitude is also the recent provision taken by the government according to which Brazilian citizens who carry out operations in digital assets are obliged to notify the tax authorities if the transactions exceed the figure of 30 thousand reals (about 6.800 euros at the current exchange rate) within a month.

What does the new legislation provide?

By the next September 30th, those who carried out transactions involving the use of Bitcoin or other virtual currencies in August he will have to notify the Tax Office monthly. The operation will be repeated month by month and aims to allow the tax authorities to constantly monitor the cryptocurrency sector within the South American country.
To impose this modus operandi is the new regulation passed by Federal Revenue Department which was published last May 3 to enter into force in September. The value required by the monthly communication can be the result of a single operation or of several transactions carried out by using currencies that rely on cryptography and Blockchain technology.

Looking for more transparency

According to analysts, the measure must be seen with a view to giving a response that will not hinder a promising and booming sector, but also be able to control it adequately, so as to prevent its potential from being create problems in terms of legality. In line with what is happening in many parts of the world, the Brazilian tax department is also trying to ensure greater transparency towards a complex universe such as that represented by cryptocurrencies. If it is true that according to some authoritative sources the Bitcoin would not be ideal for anyone wishing to clean up dirty capital and would also have been supplanted in the Dark Web as an ideal currency for dirty transactions, alarms from various institutions continue to rise very regularly. By pushing governments to take action to bring the phenomenon under their supervision and try to control it.

The issue of tax treatment

In addition to the need to prevent misuse of cryptocurrencies, governments also have the opportunity to to obtain tax advantages from transactions who see their use. In order to do this, however, it is precisely necessary to be able to effectively monitor what is happening on the markets. This is precisely the purpose of the new regulation, which not only sector operators but also natural or legal persons resident or domiciled in the country, subjects domiciled in Brazil engaged in brokerage services or who provide for the safekeeping of assets are required to submit digital.
Of course, to increase its effectiveness, a sanctioning system. Those who transgress the provisions, omitting the communication or sending information that does not correspond to reality, will have to pay one fine of 1,5% the value of transactions relating to natural persons, which will double for legal transactions.