Cryptocurrency (bitcoin) transactions must be reported to the Revenue – Legislation

All exchange offices in cryptocurrencies based in Brazil will have to declare to the IRS transactions carried out with bitcoin, ether, ripple, tokens and other crypto. In addition, individuals or companies that use exchanges from other countries should do the same if the volume traded in the month exceeds R $ 30 thousand. This starts to apply this Thursday (1st), and there is a fine in case of non-compliance.

Photo by goodegg0843 / Flickr

The new rules were published in May by the Special Secretariat of Federal Revenue, linked to the Ministry of Economy. THE Normative Instruction RFB 1,888 / 2019 establishes the “mandatory provision of information related to operations carried out with cryptography”.

If the exchange office is domiciled for tax purposes in Brazil, it will have to declare all transactions carried out with cryptocurrencies. This includes the holders, the crypto used, the amount, the amount in reais, the date and the type of operation – such as purchase and sale, transfer, withdrawal, temporary assignment (rent), among others.

And who uses foreign exchange offices based abroad? In this case, the individual or legal entity will be responsible for declaring these transactions to the Revenue Department on a monthly basis; it is mandatory to inform them whenever the monthly total exceeds R $ 30 thousand. The same goes for those who carry out direct transactions, without using an exchange. The amounts must be converted into reais using the Central Bank’s quotation (PTAX).

The National Collection system of e-CAC (Virtual Service Center) will be used to receive information about cryptocurrencies. The first set of data should be delivered in September, referring to operations carried out in August.

Federal Revenue Service (Photo: Pillar Pedreira / Senado Agency)

Revenue will charge a fine to those who make late statements

The IRS establishes a series of fines for those who do not respect the new rules. Individuals must pay R $ 100 for each month that they inform about late transactions. If the information is inaccurate, incomplete or incorrect, the penalty is 1.5% of the transaction amount. Whoever is summoned and does not provide clarification must pay R $ 500 per month.

In the case of a legal entity, fines are R $ 1,500 per month if there is a delay (R $ 500 if it is in Simples Nacional); 3% of transactions declared inaccurately, incompletely or incorrectly; and R $ 500 per month if you do not respond to a request from the IRS.

It is worth remembering that, since 2014, the Revenue has required cryptocurrencies to be declared in the Income Tax within the code “99 – Other assets and rights”. In addition, whoever sold more than R $ 35 thousand in crypto assets is taxed according to the profit on the transaction, starting at 15% (if the gains were up to R $ 5,000) and going up to 22.5% (gains above R $ 30 thousand).

The Revenue defines cryptography as “the digital representation of value denominated in its own unit of account, the price of which can be expressed in local or foreign sovereign currency, traded electronically using cryptography and distributed registration technologies, which can be used as form of investment, instrument of transfer of values ​​or access to services, and which does not constitute legal tender currency ”.

With information: Agency Brazil.

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