All Bitcoin Transactions In Brazil To Be Reported To The Department of Federal Revenue (RFB)
From the beginning of August, all Brazilian civilians have to report their crypto transaction to the Department of Federal Revenue (RFB). The Bill to do so was introduced as Normative Instruction No. 1888 on 3rd May 2019. The Bill says:
“It establishes and disciplines the obligation to provide information related to the operations carried out with crypto companies to the Special Secretariat of the Brazilian Federal Revenue (RFB).”
Given below are some of the highlights of the bill:
- The information will be submitted through the National Collection System on the Brazilian IRS website (“e-CAC”), utilizing a document to be made accessible within 60 days from notification of the NI.
- The following are expected to present information to the Brazilian IRS regarding cryptocurrency transactions: (i) Digital Currency Exchangers, domiciled in Brazil, (ii) individuals and legal entities, resident and domiciled in Brazil, engaging in transactions with DCEs domiciled overseas or without the intermediation of a DCE if the monthly value of the transactions exceeds thirty thousand reais (BRL 30,000.00).
- The information to be provided to the Brazilian IRS includes the type of operation and the amount of the cryptocurrency used, to ten decimal places; the transaction value in BRL; the address of the remittance and receipt wallet.
Penalties will be imposed for late filing, non-compliance with ancillary necessities and fallacious information. The latter of this will be subjected to amendment, which will exempt the party from fines if done before the IRS’s inspection. A fine of 1.5% to 3% might be charged by the authorities.
In other crypto news coming out of Brazil, crypto brokerage M Intermediação e Prestação de Serviço Ltda. has won a lawsuit against Banco Bradesco, which had begun after the bank closed M Intermediação’s account.