How to declare crypto assets in the Income Tax in Brazil? Check out important tips on the subject

If you are a cryptocurrency investor, you must be careful when declaring your income in the Brazilian Income Tax. The Federal Revenue has increased supervision over these digital assets and those who do not declare correctly may have problems in the future.

According to the Federal Revenue, crypto assets are not legal tender, but can be treated as capital gains instruments and must be declared. Brokers also need to declare transactions.

To help with this task, we have prepared a guide with the information needed to declare your crypto assets. Check out:

1.         Declare your profit and loss

Just like any other investment, it is necessary to declare the gains and losses made with cryptocurrencies. The value to be declared is the difference between the purchase price and the sale price of the digital asset.

2.         Use the income tax return program

To declare your crypto assets, you must use the Income Tax return program and select the “Assets and Rights” option.

In the description of the asset, inform the type of cryptocurrency and the amount owned.

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3.         Declare your cryptocurrencies abroad

If you have cryptocurrencies in foreign exchanges, you must declare them in the “Assets and Rights” form. Enter the country where the broker is located, the name of the institution and the amount of cryptocurrencies owned.

4.         Pay attention to currency fluctuations

If you have made transactions with cryptocurrencies in foreign currencies, it is necessary to be aware of exchange rate variations. The value  of the transaction to be declared is the equivalent in Brazilian Reais.

Remember that failing to declare cryptoassets can lead to fines and even criminal prosecution. Therefore, it is essential to be up to date with the Federal Revenue and correctly declare your investments in cryptocurrencies.

Do you have any questions about this subject? Do not hesitate to contact us through the available chat or e-mail

Written by Marcos Ferreira, Content Assistant to Drummond Advisors

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