Brazil Approves 15% Tax on Crypto Income from Foreign Exchanges!

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Brazil’s Senate has approved a bill that will impose a 15% tax on income derived from cryptocurrencies held on foreign exchanges. The bill, which has already been passed by the Chamber of Deputies, is expected to be signed into law by President Luiz Inácio Lula da Silva. The tax will apply to Brazilians who earn over $1,200 (6,000 Brazilian reals) on foreign exchanges, effective January 1, 2024. Funds earned before this date will be taxed when accessed by the owner, with a lower rate of 8%. The government hopes to raise $4 billion in 2024 from the new tax. Senator Rogério Marinho opposed the bill, describing it as a result of poor government management. The move comes after the governor of the Banco Central do Brazil announced plans to tighten cryptocurrency regulation in September due to its increasing popularity in Brazil.