Brazil'due south tax bureau, the Department of Federal Revenue (RFB), published a new tax code that specifies fines for taxpayers who fail to declare their Bitcoin (BTC) and cryptocurrency transactions.

On December. half-dozen, Cointelegraph Brasil reported that the new crypto tax code is a further follow-upwardly to provisions made by the RFB in August that crave Brazilian citizens to written report all transactions involving cryptocurrencies, in accordance with rules established by Normative Didactics 1,888 introduced in May 2022.

The already implemented tax code applies to individuals, companies and brokerages, and includes all crypto-related activities, including ownership and selling, besides as donations, barters, deposits, withdrawals and others.

Those who fail to file a statement on their crypto transactions will be bailiwick to penalties ranging from 500 Brazil reals (BRD) to 1500 BRD, or from $120 to $360.

In August, Cointelegraph reported that RFB believes that the cryptocurrency market in Brazil has more investors than Brazil'due south second-oldest stock exchange, B3, which reportedly had most 800,000 customers at the time.

RFB almost ran out of money

At the beginning of September, Cointelegraph Brasil reported that the RFB said that information technology volition run out of funds by the end of the month. The tax authority reportedly said at the time that if the Brazilian regime does not unlock financial resource, the tax agency would terminate agreements with contractors, stop issuing private taxpayer registry identification numbers and paying income revenue enhancement refunds.

Cryptocurrency exchanges likewise risked being affected, equally the requirement that they written report all user data and transactions involves the use of an RFB system. If the organization shut down, crypto exchanges would simultaneously be legally compelled but unable to comply with information reporting requirements.