The tax authority received a total of 237,369 tax reports from Brazilian residents with registered investments in Bitcoin, along with 181 applications submitted by citizens residing abroad. In light of these findings, parliamentary discussions began towards the end of last year concerning a bill on the taxation of foreign crypto assets.
RFB has issued a warning, conveying that Brazilian citizens could face imprisonment for a period ranging from six months to two years, in addition to significant fines if they refuse to declare their cryptocurrencies. Tax lawyer and partner at RMS Advogados, Leonardo Roesler, expressed concern over the situation, stating that the incorrect declaration of cryptocurrencies may be viewed as a crime against the tax system.
In August, Brazilian lawmakers proposed an increase in taxes on income derived from foreign-issued cryptocurrencies, aimed at encouraging traders to utilize local trading platforms.