Tax accountant with crypto reports and tax forms

Tax accountant reviews cryptocurrency reports and IRPF forms in an office on an overcast daytime.

About this subject

Individual Income Tax (IRPF) declaration in Brazil increasingly requires attention to digital assets. Since 2019, the Brazilian Federal Revenue mandates taxpayers to report cryptocurrencies such as Bitcoin, Ethereum, and tokens on both domestic and foreign exchanges. Normative Instruction 1888/2019 establishes that transactions above BRL 30,000 per month must be reported, but smaller amounts also need to be included in the annual return. Accountants specializing in crypto assets have become essential to avoid tax audits, as the Revenue cross-checks data from exchanges and the blockchain. The process involves calculating capital gains, filling out the IRPF 2024 program (tax year 2023), and attaching custody reports. In 2023, Brazil had over 4 million cryptocurrency users, according to Chainalysis, increasing the demand for skilled professionals. The overcast daytime office scene reflects the complexity and attention to detail required in this work.

Frequently Asked Questions

Do I need to declare cryptocurrencies on my tax return even if I didn't sell?

Yes, ownership of cryptocurrencies on December 31 of the tax year must be reported in the Assets and Rights section, even without selling. The Brazilian IRS requires declaration of any amount, regardless of value.

How do I calculate capital gains on cryptocurrencies?

Capital gain is the difference between the sale price and the acquisition cost. Monthly profits above BRL 35,000 are taxed at rates from 15% to 22.5%. You must use the Federal Revenue's GCAP program.

What happens if I don't declare cryptocurrencies?

Omission can result in fines from 1.5% to 20% of the tax due, plus being flagged for audit. In cases of evasion, there is risk of criminal tax charges.