Provisional Measure Sparks Crypto Tax Debate: 7.5% on Undeclared Coins

New interim law suggests a tax rate of 7.5 percent on undeclared cryptocurrencies, sparking a discussion on the tax regularization of cryptocurrencies in Brazil.

The new provisional measure in Brazil has made a radical move in taxing undeclared cryptocurrencies. The proposal sets a tax rate of 7.5 percent on virtual assets that taxpayers have not reported or have reported with errors.

This action is expected to bring equity to the tax process and introduce transparency to the crypto market.

The Special Crypto Regularization Regime.

The provision, added to Provisional Measure No. 1303 of 2025 on September 24, 2025, proposes the creation of the Regime Especial de Regularizacao de Ativos Virtuais (RERAV). 

The regime permits voluntary declaration of undeclared or falsely declared virtual assets. It is applicable to persons, legal persons, and estates that have cryptocurrencies up to December 31, 2025.

The government intends to provide a legal avenue that would allow a 7.5 percent final income tax on revised values of assets, as added by Federal Deputy Carlos Zarattini (PT-SP) as a supplementary article. 

The declaration should contain the identification of the owner, description of the asset, description of the custodian, and values in Brazilian reais, with a declaration of the lawful origin. Public keys can be sensitive wallet details that are not needed.

Tax Amnesty and Compliance Incentives.

Citizens who become part of the regime will be able to get tax debt forgiveness, along with capital or other taxes on the cryptocurrency.  The scheme also provides an amnesty on potential violations like hiding of assets and capital flight. 

The Receita Federal (Brazil’s tax authority) will set compliance deadlines with an initial period of 180 days and may extend them once for the same duration.

Popular Response and Parliamentary Discussion.

The proposal has elicited a heated debate. Others, such as Haddad of Rio de Janeiro, justify it as a step to tax justice.  But a great number of legislators are against the action; the vote via the Senate website saw more than 10,000 votes against and fewer than 900 in favor.

The 7.5 percent tax and the option of amnesty are a controversial but possibly transformative step in the cryptocurrency regulation in Brazil. 

The government aims at the reduction of tax evasion and the enhancement of transparency without requiring excessively intrusive information releases. The future of the proposal is unclear, with debates still in progress.

 

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