Authority reinforces cryptocurrency tax requirements in Brazil

According to the latest report, in Brazil, there are new additions in the cryptocurrency tax requirements in Brazil.

The traders dealing with cryptocurrency are now required to report about their transactions to the county’s National Treasury.

As per the published guidelines of Brazil’s Department of Federal Revenue, transactions that exceeded the thirty thousand dollars Brazilian real (seven thousand six hundred dollars) ought to be reported to the tax authorities.

This ruling is being perceived by the masses as a way to increase tax generation as it targets both the private investors and those companies that deal with cryptocurrency.

In South America, Brazil seems to experience the highest trading volumes for cryptocurrency, nearly topping a hundred thousand (100,000) Bitcoin in April. Furthermore, the National Treasury stated in 2018, the crypto market’s total value exceeded by around eight billion Brazilian real.

All the information related to buying, selling, or donating crypto funds will have to be submitted in Nation Collection via Virtual Service Center (e-CAC) at the end of the month.

A lack of compliance could result in the form of sanctions. Total omission might result in fines starting from a hundred to one thousand Brazilian Reals. Whereas, incorrect or incomplete filings could be garnished around one and a half to three percent (1.5-3 %) transaction’s total value.

Reportedly, these measures were announced with the intent of preventing tax evasion, money laundering, trafficking of arms and funding of terrorist activities, as cited by some media outlets in Brazilian.