📝 Description
Brazilian taxation has been regulated by the Receita Federal do Brasil (RFB) since 2023.
Brazil requires significant reporting rigor, including monthly obligations. This guide explains the Brazilian legislation for individuals and how to set up your Waltio account to generate a compliant report.
Essential Crypto Tax Facts in Brazil
Category | Tax Rule |
Local Platforms (Brazil) | Progressive rate (15% to 22.5%) with R$ 35,000/month exemption |
Foreign Platforms (Offshore) | Fixed rate of 15% (No monthly exemption) |
Crypto-to-Crypto Swaps | Taxable (Considered a "permuta") |
Passive Income (Staking...) | Taxable upon receipt |
Deadline (Annual Declaration) | May 31 of the following year (DIRPF) |
Calculation and Tax Rates: A Two-Tiered System
To calculate your capital gains, the Brazilian tax authorities impose the Weighted Average Price (Custo Médio) method. The main specificity in Brazil lies in the location of your funds:
1. Assets on Foreign Platforms (Offshore)
If you use an exchange platform that does not have a head office in Brazil (e.g., international platforms), the rule is strict:
Fixed Rate: 15% on all your capital gains.
Exemption: The old monthly exemption no longer applies to these platforms. Every Real (R$) of profit is taxable.
Loss Offsetting: You can deduct losses realized on offshore platforms from gains realized on those same offshore platforms.
2. Assets on Local Platforms (Brazilian)
If you use a platform registered in Brazil (with a CNPJ), you remain under the old capital gains regime:
The R$ 35,000 Exemption: If your total crypto sales in the month do not exceed 35,000 Reais (approx. €6,000), your gains are completely tax-exempt.
Progressive Tax Brackets: If you sell more than R$ 35,000 in the month, the profit is taxed at:
15% (up to R$ 5 million)
17.5% (from R$ 5M to R$ 10M)
20% (from R$ 10M to R$ 30M)
22.5% (above R$ 30M)
🔄 Crypto-to-Crypto Operations (Trading)
The Receita Federal is very clear: exchanging one cryptocurrency for another (called permuta in Portuguese) is a taxable event. Selling Bitcoin to buy Ethereum or USDT triggers tax on the capital gain realized at the time of exchange, as the law considers that there has been an "alienation" of the first asset.
⚙️ How are they managed on Waltio?
Great news: Waltio's behavior is perfectly aligned with Brazilian law.
The software automatically considers each Crypto-to-Crypto exchange operation as taxable and calculates the capital gain or loss realized at the exact second of the swap.
Your Action: You have no manual action to perform on these operations. The calculation engine will process your trades exactly as required by the tax administration.
🎁 Passive Income (Staking, Mining, Airdrops)
In Brazil, income generated passively (mining, staking, airdrops) is not considered capital gains but ordinary income. They are taxable at the time of receipt, valued at their market value in Reais (R$) on the exact day they are credited to your wallet.
⚙️ How are they managed on Waltio?
To simplify global accounting tracking, Waltio applies a different default methodology:
Passive income is marked as non-taxable upon receipt.
The software assigns them an acquisition value of R$ 0.
Practical consequence: Taxation is deferred. It is only when you decide to sell these tokens (for another crypto or fiat) that the operation becomes taxable. Since the acquisition price is 0, the entire disposal amount will be considered a capital gain and taxed according to disposal rules.
To ensure taxation is accounted for upon receipt (Strict RFB Compliance):
If you wish to declare this income in the exact month/year of receipt to respect the letter of Brazilian law, a manual process is required on Waltio. You will need to individually modify each passive gain transaction to enter its acquisition price (i.e., the token's market price on the exact day of receipt). Thus, the acquisition value will no longer be 0, and the operation will be recorded as immediate income. This value will then become your cost basis for future sales.
✅ What Triggers Tax (Crypto ➔ Fiat)
In addition to crypto-crypto swaps, tax is triggered by any exit to the real economy:
Sale for currency: Converting your cryptos into Reais (BRL), Dollars (USD), or Euros (EUR).
Purchase of a good or service: Using your cryptos to pay for everyday purchases.
📝 Declarations: A Busy Calendar
Brazil requires very regular monitoring, well beyond the simple annual declaration:
Monthly Declaration (IN 1888): If you use foreign platforms (offshore) or non-custodial wallets (DeFi/Ledger) and your transactions exceed R$ 30,000 in the month, you must report these movements to the RFB via the e-CAC system the following month. (Brazilian platforms do this automatically for you).
Monthly Payment (GCAP/Carnê-Leão): If you realized taxable capital gains in the past month (e.g., by exceeding the R$ 35,000 exemption on a local CEX, or any gain on an offshore CEX), the tax must be paid by the last business day of the following month.
Annual Declaration (DIRPF): From early March to May 31 of the following year, you must declare the balance of your assets (as of December 31) and consolidate all your gains and taxes paid during the year.
Disclaimer: This guide is provided for informational and educational purposes only. Legislation surrounding digital assets in Brazil (notably the Offshore/Local distinction and IN 1888 obligations) is complex and subject to change. Waltio does not provide tax or legal advice. We strongly recommend consulting a certified accountant (Contador) in Brazil to validate your monthly and annual declarations.