If you invest money in crypto assets, such as bitcoins, for example, may have doubts about the Normative Instruction (IN) 1.888 of 2019, which was released this year by the Federal Revenue Service of Brazil and which determines that national cryptocurrency brokers must report all user transactions carried out on their platforms. And that users of international brokerages must also report transactions in certain cases.
Among the transactions that need to be reported to the IRS are:
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Buy and sell;
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Exchange;
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Donation;
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Crypto asset transfer to the exchange;
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Withdrawal of cryptocurrency from the exchange;
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Temporary assignment (rent);
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Payment in payment;
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Issue; and
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Other operations involving the transfer of crypto-assets.
The declaration will only be mandatory when the monthly value of the operations, whether isolated or joint, exceeds R$ 30.000,00. The sending of information must be monthly and sent until 23:59 of the last business day of the following month in which the transactions were carried out. The limit is not applicable to Exchange (company, even if not financial, offers services related to operations carried out with crypto-assets), these companies must also deliver an annual statement showing the balance of crypto-assets in possession of their customers on December 31 .
The delay in submitting the declaration for individuals is R$100 per month of delay. In the case of legal entities, the fine generated will be between R$ 00 and R$ 500,00 for the month of delay. If there is incorrect or incomplete information in the declaration, the fine may vary between 1.500,00% of the transaction value for individuals and 1,5% for legal entities.
If you use a national broker to buy your crypto assets, there is no need to inform the data to the tax authorities, as the information will be automatically sent. However, if your operations are carried out outside Brazil, without the intermediation of the broker, sending the information to the Tax Authorities is your responsibility.
Access the IN in its entirety through the link below, or contact TATICCA – ALLINIAL GLOBAL, which can help you.
http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?visao=anotado&idAto=100592
Get in touch with TATICCA – ALLINIAL GLOBAL, which offers integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. PFor more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.