Cryptocurrency taxes: how to file without errors

Cryptoassets are treated by the Receita Federal (Brazilian Federal Revenue Service) as assets subject to capital gains tax and must be declared. The rules depend on where the transaction takes place, the total value of sales in the month, and the type of investment. This summary is educational; regulations change and should be checked on official websites before filing any return.

Transactions on Brazilian exchanges

For individuals, sales of cryptoassets totaling up to R$ 35,000 in a month, through operations in Brazil, have been exempt from capital gains tax. Above this amount, profit is taxed at progressive capital gains rates starting at 15%. The tax is paid via DARF (federal tax payment slip) by the last business day of the month following the sale. Swapping one cryptocurrency for another can also be considered a taxable disposal.

Foreign exchanges and self-custody

Law 14,754/2023 began treating virtual assets held abroad as foreign financial investments. Income and gains are determined annually and taxed at 15% on the annual tax return, without the monthly exemption. Because the definition of an offshore asset raises questions, especially regarding self-custodial wallets, consult the current guidance from the Receita Federal or an accountant.

How to report on the Assets and Rights schedule

Cryptoassets must be reported in the specific cryptoassets group on the Assets and Rights schedule (Bens e Direitos), using the code corresponding to the asset type, at acquisition cost rather than market value. The cost is calculated using the weighted average purchase price, including fees. In the description field, state the quantity, the asset, and where it is custodied.

Obligation to report transactions

In addition to the annual tax return, the Receita Federal requires transactions carried out outside Brazilian exchanges, or directly peer-to-peer, to be reported monthly when they exceed the threshold set in normative instructions. Domestic exchanges already report this data directly. Check the Receita Federal cryptoassets webpage to see which regulation and threshold are currently in effect.

Simplified example

An individual bought 0.1 BTC for R$ 20,000 and sold it all in a single month for R$ 40,000 on a Brazilian exchange. Since total sales for the month exceeded R$ 35,000, the R$ 20,000 gain would be taxed, in this example, at 15%, generating a tax of R$ 3,000. If they had sold half in one month and half in the following month, each month would have had sales of R$ 20,000, remaining within the exemption threshold. This example illustrates the logic of the rule and does not replace a calculation for your specific situation.

Stay organized throughout the year

Keep records of purchase and sale statements, recalculate your average cost with each new purchase, and track total sales each month. Leaving everything for April usually leads to mistakes and late-payment penalties on the DARF. If you have a high volume of transactions or foreign assets, working with an accountant experienced in cryptoassets can help avoid problems.