Brazil’s Ministry of Finance has taken action to simplify the crypto tax and replace the tiered system with a single flat fee. On June 12, temporary measure 1303 took effect, canceling old rest hours, allowing residents to sell up to 35,000 reais (about $6,300) in Crypto each month. Now every capital from digital assets will face a 17.5% tax.
Uniform tax applies to all investors
According to local reports, the new rules end the waiver and treat all traders the same. Small sellers who once did not pay any payments owe 17.5% of each proceeds. Big players can actually save money. Previously, anyone who traveled over 30 million reais a month reached a maximum interest rate of 22.5%. Now they only pay 17.5%.
Small traders face bigger bills
According to a report from Portal Do Bitcoin, those who sold Rs 30,000 of cryptocurrencies last month will owe zero under the old law. At the new fixed interest rate, the person now owes R $5,250. This is a sharp rise for casual users and amateurs.
New 🇧🇷: Brazil ends crypto tax exemption, with a new tax of 17.5% on all profits without $35,000 per month! According to temporary measures 1303, even very small $ btc or $eth Benefits are now equally taxed. Retailer traders hit the hardest, and bigger players may benefit.#Brazil… pic.twitter.com/3eeetclcv5i
– FinanceFeeds (@fxfinancefeeds) June 13, 2025
Meanwhile, a dealer processed a deal of 10 million reais would reduce from about 1.75 million reais under the old system to 1.75 million reais now, so there is no change. However, those over Rs 30 million saved 150,000 reais per 150,000 reais.
Quarterly Reports and Losses
Holding cryptocurrency in self-expression wallets or foreign holdings has not escaped this major revision. All income is calculated every three months. Investors can offset losses in the first five quarters.
After 2025, that window shrinks. Starting in January 2026, only losses can be calculated over the past few quarters. Traders will need better recordkeeping and careful timing.
Other assets and betting targets
This measure is not limited to cryptocurrencies. Fixed income papers such as LCA, LCIS, CRIS and CRA now carry a 5% profit tax. Betting operators’ interest rates jumped from 12% to 18%. The ministry won’t say how much extra cash it expects.
But lawmakers hope to stabilize flows after failed attempts to increase financial transaction taxes, which were boosted by strong markets and Congress.
Meanwhile, a separate bill would allow employers to pay a portion of their wages on cryptocurrencies, with a limit of 50%. Foreign employees or contractors are allowed to pay in full crypto only under strict rules.
The wages of standard workers must be kept in Fiat. If both parties agree, the contractor can choose to 100% encryption. All expenditures will be used to set official exchange rates on the platform approved by the central bank.
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