Brazil Scraps Crypto Tax Break, Sets 17.5% Flat Rate

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Brazil has ended its tax exemption for small crypto gains, imposing a uniform 17.5% rate on all digital asset profits.

The new rule, effective June 12, replaces a tiered system that previously exempted trades under 35,000 reals ($6,300) per month.

While small investors will pay more, large traders—previously taxed up to 22.5%—could see lower bills.

The change comes via Provisional Measure 1303, part of Brazil’s push to boost financial market revenue.