Brazilian lawmakers are advancing legislation that would raise taxes on cryptocurrencies held overseas.
According to local reports, a congressional committee has approved an amendment to a bill that would recognize cryptocurrencies as financial assets for tax purposes on overseas investments.
In addition, the draft bill imposes taxes on fluctuations in the price of crypto assets relative to Brazilian fiat currencies, as well as gains from fluctuations in foreign exchange rates.
According to Congressman Merlong Solano, the revision is aimed at promoting equal tax treatment, as tax breaks for overseas cryptocurrency investments are currently low.
Under the new rules, foreign income up to 6,000 Brazilian reals (about $1,200) will be exempt from tax. Income between £6,000 and £50,000 (~$10,000) is taxed at 15%.
Beyond this threshold, the tax rate is 22.5%. Congress will vote on the bill on Aug. 28. If approved, the new tax will come into effect in January 2024.