If you bought or sold bitcoins or other cryptocurrencies in 2019, you must report ownership of them on the “Goods and Rights” form of the 2020 Income Tax return. Any capital gains above R$ 35,000 per month are subject to tax withholding.
For gains of up to R$ 5 million, the rate is 15%, gradually increasing above this amount. See below how to fill out the tax return and collect the tax correctly. Cryptocurrency should be declared as well
Any virtual currency must be declared as if it were a good, such as a house, a car or a financial application. To do this, open the “Goods and Rights” form in the IR 2020 declaration program.
Click “new” and then choose code 99 – Other assets and rights. Detail the purchase of currency in the field “Discrimination”. Enter which cryptocurrency you bought, the amount purchased, the date of purchase and the name of the broker where the transaction took place.
If the purchase was made directly from someone else, enter their name and CPF. Each purchase transaction must be declared individually (by transaction date and cryptocurrency type).
If you didn’t have cryptocurrencies in 2018, fill in the “Situation on 31/12/2018” field with zero value. In the field “Situation on 12/31/2019” enter the amount paid on the purchase in Reais. Do not update the value by the current currency quote. What counts for the IR statement is how much you paid. I bought bitcoins abroad. Do I have to declare?
Yes. Anyone who has purchased bitcoins or other digital currencies through an exchange or from another person abroad is also required to declare ownership of the asset. The declaration must be made in the same way.
In the “discrimination” field, enter the details of the purchase, the name and country of origin of the broker. Enter the amount paid equivalent in Reais on the date of purchase. On the Website of the Central Bank it is possible to consult the exchange rate of several currencies on specific dates. And who sold cryptocurrencies in 2019?
Those who sold cryptocurrencies in 2019 and had already declared ownership of them in 2018 should give up the good. That is, in the “Discrimination” field, enter the sales details. Repeat the value declared in 2018 in the “situation on 12/31/2018” field and place zero in the “situation on 12/31/2019” field.
If you recorded a net gain on the sale of currencies above R$ 35,000 in the period of one month, you must collect Income Tax. Sales with monthly earnings below this amount are tax-exempt.
Taxation is progressive, varying according to the size of the profit:
- 15% on the monthly net gain of up to R$ 5 million.
- 17.5% on the gain above R$ 5 million and below R$ 10 million.
- 20% on the gain above R$ 10 million and below R$ 30 million.
- 22.5% on the monthly gain above R$ 30 million
Tax must be paid in the month following sale
The calculation and collection of capital gain tax with cryptocurrencies is the responsibility of the taxpayer. Payment must be made by the last business day of the month following the sale. For example, if you sold bitcoins in March 2019, the tax should have been collected by April 30 of that year.
To pay the tax you must fill out the Darf (federal collection document) with your data and the “revenue code” 4600.
If you have not made the payment within the correct time, you will need to calculate the interest and fine, which can reach 20% of the amount due. To recalculate Darf with fine and interest, use the Sicalcweb program, available from the Revenue website.What you need to know about IR 2020
Ask your questions with an expert in the UOL group
Download the program to declare
Want to pay less tax? See list of what you can cash or not
Have you checked if you really have to declare this year?
Deadline runs until June 30, and fine may be much higher than it seems
Read answers to key questions about the statement
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