In a surprising decision, Brazil has made major changes to its policy on cryptographic taxes. Under provisional measure n ° 1303, all cryptographic investors will be subject to a tax of 17.5% on profits.
As part of the previous tax regime, small traders were exempt, while the largest paid up to 22% on annual profits. This controversial tax perceived reduces the burden of the wealthy investors.
The new tax rules for Brazil cryptography will benefit the rich
Brazil has made some important friendly political decisions in recent months. For example, he launched the first ETF XRP in the world in April and examined substantial bitcoin investments this month, and it is in addition to other public-private partnerships.
In this context, Brazil’s attempt to revise the tax policy for cryptography has run a few heads.
According to local media coverage, the new rules of the Brazil cryptographic tax include several major changes.
As part of the previous system, investors were exempt from taxes until their earnings reached a threshold of 35,000 R $ (6,298 USD). If they reach this level of income, they would pay a tax rate of 15% until they reach $ 900,000 in profits, etc. until they reach a maximum rate of 22%.
However, as part of the new system, all cryptographic investors in Brazil will be subject to a tax rate of 17.5%. This means that small investors pay more, while some large investors can pay less than before.
In other words, this model directly encourages local elites to dominate the country’s cryptography trade and puts regular investors in disadvantage.
In addition, this decision seems even stranger compared to the other proposed taxes of Brazil. Two days ago, a legislator proposed a bill with new restrictions on the exploitation of Bitcoin, including stricter licenses and higher taxes on daily operations.
Provisional measure n ° 1303 was proposed by the Minister of Finance of Brazil instead of a member of the Congress, but the two come from the same party. If Brazil tried to repress the crypto, why would it drop the tax rates for the rich?
If he tried to encourage investment in cryptography, why suppress minors? Of course, this legislation may not adopt, but it could reveal internal policy disputes.
Be that as it may, local media claim that these cryptographic taxes are an effort to improve other budgetary controversies in Brazil. The government requires a flat rate of 17.5% on similar types of investment and the abolition of exemptions from assets such as fixed income securities.
The tax institutions tax also increased by 6%.
For the moment, it is difficult to predict what impact these taxes will have on Brazil. If these policies conflict with the government’s attempt to attract cryptographic investments, it can try other solutions.
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