The Department of Federal Revenue(RFB), Brazil’s tax agency printed a new tax code that states fines for taxpayers who fail to declare their Bitcoin (BTC) and cryptocurrency transactions.
According to a Brazilian report on December 6, the new cryptocurrency tax code is an additional follow-up to provisions created by the RFB in August that need Brazilian citizens to report all transactions involving cryptocurrencies, in unison with rules established by Normative Instruction 1,888 introduced in May 2019.
The earlier imposed tax code applies to people, firms and brokerages, and includes all cryptocurrency-related activities, as well as buying and selling, also barters, donations, deposits, withdrawal and others.
Those who fail to file a report on their cryptocurrency transactions are going to be subject to penalties starting from 500 Brazil reals (BRD) to 1500 BRd or from 120 to 360 dollars.
According to a report in August, RFB trust that the cryptocurrency market in Brazil has additional stockholder(investors)than Brazil’s second oldest stock exchange, B3, that evidently had about 800,000 customers at the time.
RFB almost ran out of money
A Brazilian blog reported at the beginning of September that the RFB aforementioned that it will run out of funds by the end of the month. The tax jurisdiction is reportedly aforementioned that at the time that if the Brazilian government does not unlock money resources, the tax agency would cancel agreements with contractors, end issuing individual taxpayer registry identification numbers and paying revenue tax refunds.
Crypto exchanges also risked being affected, because the demand that they report all user transactions and information involves the utilization of an RFB system. If the system fails, cryptocurrency exchanges would at the same be legally compelled however unable to comply with information reporting requirements.