Tax accountant with crypto reports and tax forms

Accountant reviewing crypto reports and IRPF forms, crucial for declaring digital income in Brazil.

About this subject

Declaring cryptocurrencies in Brazil's income tax (IRPF) has been mandatory since 2019, according to the Federal Revenue's normative instruction. A tax accountant specializing in crypto assets must master both tax legislation and the specifics of exchanges and wallets. Each transaction, whether purchase, sale, or exchange, must be recorded with date, value in reais, and amount of cryptocurrency. The Federal Revenue cross-references data reported by Brazilian exchanges with taxpayers' declarations, and omissions can result in fines of up to 150% of the tax due. Since 2020, cryptocurrency declarations must be made in the IRPF 2024 program, which includes a specific section for assets and rights, where the accountant details cryptocurrencies as assets. Complexity increases with operations on foreign exchanges, requiring currency conversion and potentially involving capital gains taxation. The professional must also consider the recent CVM regulation on digital assets, which impacts the classification of tokens as securities. For taxpayers, having an up-to-date accountant is essential to avoid errors and take advantage of possible exemptions, such as selling cryptocurrencies below R$ 35,000 per month.

Frequently Asked Questions

Which cryptocurrencies must be declared in the IRPF?

All cryptocurrencies, such as Bitcoin, Ethereum, and stablecoins, must be declared, regardless of value, if held by the taxpayer on December 31 of the calendar year.

What happens if I don't declare cryptocurrencies?

Omission can result in a fine of 1.5% per month on the tax due, capped at 20%, plus interest. In cases of evasion, the fine can reach 150%.

How to declare cryptocurrencies bought on foreign exchanges?

The value must be converted to reais using the exchange rate on the transaction date and reported in the Assets and Rights section, with the specific code for crypto assets.