Brazilian Cryptocurrency Users are Required to Disclose Details of Their Transactions
Recently, in an announcement, Brazilian virtual currency traders, users, and exchanges are required to unveil the details of their transactions, for the first time. The requested data must be given by filling an online form, or by submitting the required document, based upon the requirements set out in the Interpretative Declaratory Act, which came into effect in late August. Besides, for the first time, these filings are required by September 30, 2019, based on the transactions that occurred during August 2019.
Beginning August, there was a declaration that Brazil citizens should report about their cryptocurrency transactions with the nation’s tax authority, the RFB (Department of Federal Revenue). Transactions, including cryptocurrencies such as BTC (Bitcoin), must be accounted to the RFB.
Moreover, as detailed by national public news agency, the new measure applies to people, organizations, and businesses, and incorporates a wide range of crypto-related activities, including purchasing and selling, and also barters, deposits, donations, withdrawals, and others.
Besides, the measure expects the elements to give monthly reports before the month’s end detailing about when crypto-related transactions happened, the report states. Accordingly, the data for August need to be given until the last business day of September.
As per the rules, local crypto trades should inform the RFB of all the operations irrespective of the value. Moreover, the individuals who use brokerages or exchanges or make P2P exchanges in crypto should have to give an account of the transactions if the monthly sum surpassed 30,000 Brazilian reais (7,800 dollars).
Furthermore, the filings, which should now be filed every month, can be sent through the online e-CAC tax service portal. Over and above, the individuals who neglect to provide details regarding their crypto exchanges will face punishments which range from 100 to 500 Brazil reais or from 25 to 130 dollars. Additionally, the RFB is also approved to charge from 1.5 to 3 percent of the amount of the unreported exchange as a punishment, for non-compliance.
The RFB accepts that the digital currency sector in Brazil has a more significant number of investors than Brazil’s oldest second stock exchange, B3, which allegedly has around 800,000 clients. By applying the measure, the authority means to restrain illegal exercises, like tax evasion, tax avoidance, and terrorist financing.