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Buying cryptocurrency outside the country: do you know what the Brazilian IRS says?

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Through Consultation Solution No. 5, published on the 3rd, the Federal Revenue Service published a position on the incidence of IOF on remittance of funds for the purchase of cryptocurrency abroad.

In this case, the Consultant clarified that he would make remittances abroad to an account of his own ownership in an Exchange and, from that foreign account, he would acquire the cryptocurrency.

The agency further elaborated that “in the exchange settlement resulting from a remittance of values ​​to an account abroad of the same title, for placing availability of a resident in Brazil, for future purchase of bitcoins in Exchange abroad, IOF will be charged at a rate of 1.1%. “

Still in the same Consultation Solution, the Federal Revenue Service decided not to levy Income Tax (“IRRF”) on this type of remittance abroad because the occurrence of the taxable event was not characterized, since, in the In the words of the Federal Revenue Service itself, “the amount sent abroad is not characterized, under the conditions presented, as income, capital gain or earnings”.

Although the rules on declaring Bitcoin and other cryptocurrencies are not yet very clear in Brazil, the Brazilian Federal Revenue Service has already asked Brazilians to declare their cryptocurrency holdings, especially those acquired from national brokerages, since 2019.