The fines could be from 500 to 1,500 Brazilian reals, an approximate of 120 to 360 USD.
As a method to improve the collection of taxes and prevent the illegal use of any type of value, the Tax Agency corresponding to the Department of Federal Revenue of Brazil(RFB), issued a recent statement in which it states that a new resolution which dictates a tax code updated to the new financial processes was approved. It is for this reason that now all taxpayers must declare all transactions they make with Bitcoin or with any other cryptocurrency, otherwise, they may be fined.
When regulation No. 1888 was established, last May, to the tax code in the South American country, the details that revolve around the mandatory nature of the law had not been specified. Thus, on December 6th, a continuation in detail of the provision that must be adopted by all taxpayers who declare before the tax body and conduct transactions in cryptocurrencies was published in a Brazilian news portal. Therefore, its adoption is mandatory.
According to the data offered by the issuing entity of the statement, the regulations extend to all transactions made with cryptocurrencies, thus comprising the purchase and sale of the asset, deposits, withdrawals, donations, exchanges, among other types of operations. In the same way, the rule must be applied by all those natural and legal people, as well as companies and organizations.
The list of tariffs for breach of the ordinance was also announced, stating that those who do not comply with the declaration of these assets, will be subject to fines ranging from 500 Brazilian reals (BRD), up to 1500 BRD. This is the equivalent to an amount in US dollars from 120 USD to 360 USD.
According to data supplied by the RFB, by August of the current year, the market for crypto assets in Brazil exceeds even the second-largest stock exchange in the country, B3, which to date amounted to more than 800,000 active customers.
The RFB in Financial Troubles
Last September, some local media warned that RFB could lose the necessary funds for its operation since the end of that month.
According to the press release, the tax center commented that the country’s government had not unlocked the funds necessary for its operation. In this way, they would run the risk of having to cancel national and international agreements with contractors, they would also cease to grant the ID numbers of all taxpayers, and it would be impossible for them to pay the income tax refunds.
According to the possibility of financial failure, the exchanges of digital currencies could also be affected since to all transactions and user data to be reported, they must be performed through the RFB system. So, in simple terms, these companies would be legally obliged to comply with the rule, but it would be impossible for them to notify the data without the active system.
By María Rodríguez
