If you invest money in cryptoassets, such as Bitcons, for example, you may have questions about Normative Instruction (IN) 1,888 of 2019, which was released this year by the Brazilian Federal Revenue Service and which states that national cryptocurrency brokers must report all user transactions carried out on their platforms. And that users of international brokerage firms must also report transactions in certain cases.
Among the transactions that need to be reported to the IRS are:
· Buying and selling;
· Exchange;
· Donation;
· Transfer of cryptoassets to the exchange;
· Withdrawal of cryptoassets from the exchange;
· Temporary assignment (rent);
· Donation in payment;
· Issuance; and
· Other operations involving the transfer of cryptoassets.
The declaration is mandatory only when the monthly value of the transactions, whether isolated or joint, exceeds R$ 30,000.00. Information must be sent monthly and must be sent no later than 23:59 on the last business day of the following month in which the transactions were made. The limit is not applicable to the Exchange (a company, even if not a financial one, offers services related to transactions carried out with cryptoassets), these companies must also submit an annual return showing the balance of the cryptoassets held by their clients on December 31.
The delay in submitting the declaration to an individual is R$100, 00 a month late. In the case of a legal entity, the fine generated will be between R$ 500.00 and R$ 1,500.00 per month of delay. If there is incorrect or incomplete information in the declaration, the fine may vary between 1.5% of the transaction amount for individuals and 3% for legal entities.
If you use a national broker to buy your crypto assets, there is no need to provide the data to the tax authorities, as the information will be automatically sent. However, if your operations are carried out outside Brazil, without the intermediation of the broker, it is your responsibility to send the information to the tax authorities.
Access the IN in full at the link below, or contact TATICCA — ALLINIAL GLOBAL, who can assist you.
http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?visao=anotado&idAto=100592
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
