As cryptocurrency adoption surges in Brazil, understanding how to report crypto income to the Receita Federal (RFB) is essential. Failure to comply can lead to audits, fines up to 150% of owed taxes, and legal penalties. This guide breaks down Brazil’s crypto tax framework into actionable steps, helping investors stay compliant while maximizing deductions.
Understanding Brazil’s Crypto Tax Rules
Brazil treats cryptocurrencies as “financial assets” under Normative Instruction 1,888/2019. Key principles include:
- Taxable Events: Selling crypto for BRL, trading between cryptocurrencies, receiving staking rewards, and earning from DeFi protocols
- Exemptions: Purchases under BRL 35,000/month (if total portfolio ≤ BRL 5,000)
- Tax Rates: Progressive capital gains tax from 15% to 22.5% based on monthly profit
- Reporting Threshold: Mandatory for all transactions exceeding BRL 35,000/month
Step-by-Step Reporting Process
- Gather Documentation: Collect exchange records, wallet addresses, transaction dates, values in BRL, and fees
- Calculate Gains/Losses: Use FIFO (First-In-First-Out) method. Formula: Sale Price – (Purchase Price + Fees)
- File Monthly DARF: Generate tax code 6015 via the RFB website for profits over exemption limits. Pay by the last business day of the following month
- Annual Declaration: Include all crypto activity in your DIRPF (Income Tax Return) by April 30th using the “Bens e Direitos” section
- Pay Taxes: Settle dues via GRU (Federal Revenue Guide) at authorized banks
Common Reporting Mistakes to Avoid
- Ignoring crypto-to-crypto trades (e.g., BTC to ETH)
- Forgetting mined/staked income
- Miscalculating cost basis by omitting transaction fees
- Missing BRL conversion rates on transaction dates
- Failing to report losses (deductible from future gains)
Essential Reporting Tools
- Software: Koinly or CoinTracking for automated profit/loss calculations
- RFB Resources: e-CAC portal for DARF generation
- Exchange Reports: Binance/Bitcoin Market tax documents
- Currency Converters: Central Bank of Brazil’s daily rates
Frequently Asked Questions (FAQ)
Q: Is crypto taxed if I hold without selling?
A: No – only disposal events trigger taxation. Long-term holding isn’t taxable.
Q: How are NFTs taxed in Brazil?
A: Treated as crypto assets – subject to capital gains tax upon sale.
Q: Can I deduct crypto losses?
A: Yes – losses offset gains in the same month or carry forward for 5 years.
Q: Do foreign exchange transactions need reporting?
A: Absolutely – all global crypto activity must be declared to RFB.
Q: What happens if I miss the DARF deadline?
A: Penalties include 0.33% daily interest + 1% monthly fine until paid.
Always consult a contador (accountant) specializing in crypto for complex cases. Keep records for 5 years as RFB may audit retrospectively.
