The President of Brazil, Luis Inácio Lula da Silva, has signed a law introducing the taxation of crypto assets held abroad by the country’s citizens.
Lula signed the law on Dec. 12, which was then published the following day in the official Gazette of the Union. With some reservations, the law will come into force from Jan. 1, 2024.
The new taxes will not apply exclusively to crypto but also to profits and dividends gained by Brazilian taxpayers from investment funds, platforms, real estate or trusts abroad. The Brazilian government intends to collect around 20 billion reals ($4 billion) of new taxes next year.
Related: IRS lists 4 crypto crimes among its top cases in 2023
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