Brazil Gazettes Consultation Solution Clarifying Tax Treatment of Capital Gains From Digital Currency Transactions

The Brazilian Official Gazette May 24 published Consultation Solution No. 6008, clarifying the tax treatment of capital gains received from digital currency transactions. The consultation solution clarified: 1) capital gains calculated on digital currency transactions where one currency is used to directly acquire another are subject to progressive individual income tax rates; 2) progressive individual income tax rates apply to transactions of this kind even if the digital currency wasn’t previously converted into Brazilian reals or fiat currency; and 3) capital gains earned from digital currency transactions of up to 35,000 reals (US$7,261) per month are income tax-exempt. [Brazil, Official ...