Brazil’s crypto tax rules have taken a decisive turn in 2025. What was once a tiered system with exemptions for small traders has now shifted to a flat capital gains tax of 17.5%. This change applies universally, from casual investors to high-volume traders, without any monthly exemption threshold.
Whether you’re trading through Binance Brazil, holding tokens in MetaMask, or using offshore exchanges, the new rules make all gains taxable. This guide breaks down what the 17.5% capital gains tax means for you, how to report your crypto profits accurately, and how to reduce your tax burden with legal deductions. Let’s dive into the essentials for filing crypto taxes correctly in 2025.
Flat 17.5% Crypto Capital Gains Tax: What Changed?
Before June 2025, Brazilian taxpayers could benefit from a monthly tax exemption of R$35,000 on crypto sales, and progressive tax slabs ranging from 15% to 22.5% applied for higher profits. However, this tiered system was eliminated on June 12, 2025, with the enactment of Provisional Measure 1303.
Under the new law, a flat 17.5% capital gains tax now applies to all crypto transactions, regardless of transaction size, profit amount, or asset type. This includes tokens held on centralized exchanges, self-custody wallets, and foreign platforms. All digital asset disposals are taxed uniformly, with no minimum thresholds.
While this move increases tax liability for small traders, high-volume investors may benefit due to the cap on higher rates. Overall, the government’s aim is to simplify enforcement and increase tax compliance across Brazil’s growing crypto ecosystem.
Read More: Ultimate Crypto Tax Guide for Brazil
Which Crypto Transactions Are Considered Capital Gains?
Under Brazil’s 2025 tax regime, capital gains are triggered whenever you dispose of crypto in a way that generates profit. The following activities are considered taxable events:
- Selling crypto for fiat currency (e.g., BRL)
- Trading one cryptocurrency for another (e.g., swapping BTC for ETH)
- Using crypto to pay for goods or services
If any of these actions result in a gain, the profit is taxed at 17.5%, regardless of the transaction size or platform used.
Self-Custody and Offshore Wallets Included
Unlike the earlier regime, the new rules also apply to digital assets held in self-custody wallets (like MetaMask or hardware wallets) and offshore exchanges. You must declare and pay tax on gains made from these sources, even if the transactions occur outside Brazil.
What’s Not a Capital Gain?
Activities like mining, staking, or airdrop rewards are not treated as capital gains. Instead, they fall under the category of taxable income and must be reported separately using fair market value in BRL at the time of receipt.
How to Calculate Capital Gains on Crypto in Brazil?
Capital gains on crypto in Brazil are calculated by subtracting the acquisition cost from the sale price of the digital asset. The resulting profit is subject to a flat 17.5% tax as of June 12, 2025.
Formula for Capital Gains
Capital Gain = Sale Price – Acquisition Cost – Transaction Fees |
- Sale Price: The amount received in BRL at the time of disposal.
- Acquisition Cost: The price paid to acquire the crypto, including fees.
Transaction Fees: Deductible fees associated with the trade (e.g., exchange or gas fees)
Example:
Let’s say you sold 1 ETH for R$12,000. You originally bought it for R$8,000 and paid R$200 in fees.
- Capital Gain = R$12,000 – R$8,000 – R$200 = R$3,800;
- Tax Owed = 17.5% of R$3,800 = R$665
The same formula applies whether the asset was traded, sold for fiat, or swapped for another token.
Self-Custody & Offshore Crypto: Now Taxable
Under Brazil’s revised tax regime, self-custody wallets and offshore crypto holdings are now fully taxable. This means digital assets stored on wallets like MetaMask or held on foreign exchanges and DeFi platforms are no longer exempt from capital gains taxation.
Regardless of where the asset is stored or traded, if you’re a Brazilian resident, any profit realized is subject to the flat 17.5% capital gains tax.
To stay compliant, taxpayers must maintain detailed records including:
- Wallet addresses associated with transactions
- Timestamps of every buy, sell, or trade event
- Transaction values converted to BRL at the time of the event
Failure to report or accurately document these holdings could lead to fines or further scrutiny from Receita Federal.
Quarterly Reporting Requirements to Receita Federal
In Brazil, crypto capital gains must be reported to Receita Federal every quarter, not just annually. This ensures timely tax collection and prevents the accumulation of undeclared gains over the year.
Key Reporting Tools
- DARF (Documento de Arrecadação de Receitas Federais): This is the primary payment form for capital gains tax. A separate DARF must be generated and paid for each month in which taxable gains occur.
- GCAP (Ganho de Capital): While GCAP is typically used for capital assets, crypto users can use it for recordkeeping, especially if assets were moved across wallets or converted multiple times before selling.
Deadlines and Penalties
The payment deadline is the last working day of the month following the taxable event. For example, gains from January must be reported and paid by the end of February.
Failure to submit DARF payments or report capital gains may result in:
- Fines starting at 0.33% per day of delay, capped at 20% of the total tax due.
- Interest charges based on SELIC, the official interest rate, for overdue payments.
- Additional scrutiny or audits by Receita Federal if repeated delays occur.
How To Offset Crypto Losses In Brazil?
Brazil’s current crypto tax regime allows investors to offset capital losses against gains from other quarters, helping to lower the total tax liability.
Offset Period: Up to 5 Previous Quarters
If you incur a loss in one quarter, you can apply it to reduce gains from the previous five quarters. For example, a loss in Q2 2025 can offset profits made anytime between Q1 2024 and Q1 2025.
This flexibility enables investors to smooth out tax impacts over time, especially in volatile markets.
Documentation Is Mandatory
To claim these offsets, you must:
- Maintain detailed transaction records showing purchase and sale values
- Include loss figures accurately in your tax return
- Keep receipts or blockchain proofs for verification during audits
Improper documentation can invalidate the claim and lead to penalties.
Note: Starting in 2026, the carry-forward window may be shortened as per upcoming regulations under Provisional Measure 1303. While details are still being finalized, the government intends to tighten rules to prevent indefinite deferrals and boost tax collections. |
How KoinX Helps You Manage and Report Crypto Capital Gains in Brazil?
Tracking your crypto gains manually, especially from multiple wallets and offshore exchanges, is time-consuming and error-prone. Missing a single record can result in heavy fines or rejected tax filings. That’s where KoinX makes all the difference. It’s a purpose-built platform that automates your tax reporting while ensuring full compliance with Receita Federal rules.
Seamless Integration With 300+ Platforms
KoinX integrates directly with over 300 wallets, exchanges, and blockchains, including Binance, MetaMask, Kraken, and more. This means your trades, transfers, and transactions are automatically synced, saving you hours of manual entry and reducing the chance of missed records.
Brazil-Compliant Tax Reports
Every capital gain report generated by KoinX aligns with Receita Federal’s latest crypto tax rules, including the new 17.5% flat rate. Whether your gains come from self-custody, foreign platforms, or DeFi, your report includes accurate BRL valuations and is formatted for quick DARF and GCAP submission.
Auto-Classification of Transactions
KoinX’s smart system automatically categorizes your transactions, be it trades, airdrops, swaps, or conversions. This ensures each taxable event is classified under the right bracket, helping you avoid filing errors and making your quarterly reports audit-ready.
Real-Time Portfolio Tracking
You get a consolidated dashboard showing your real-time crypto holdings, valuations in BRL, and performance across all assets. This not only helps in capital gain calculations but also gives you a clear financial picture to plan your sell-offs better.
Error-Free Loss Offset Reports
KoinX flags your quarterly gains and losses, highlights when you can carry forward losses, and generates accurate offset records. This ensures that you’re not paying more tax than required while staying fully compliant with Brazil’s loss adjustment rules.
If you’re serious about staying compliant and avoiding fines in Brazil’s evolving tax landscape, it’s time to automate with KoinX. Join KoinX now and take control of your crypto taxes with confidence.
Conclusion
Brazil’s new 17.5% flat tax on crypto capital gains has made compliance more complex for both small and large investors. From tracking transactions across self-custody wallets to quarterly filings with Receita Federal, missing any detail can cost you in fines or overpaid taxes.
That’s why using a reliable crypto tax tool like KoinX is no longer optional—it’s essential. With automated tracking, Brazil-compliant tax reports, and real-time portfolio insights, KoinX ensures you’re always ready for your next quarterly filing. Join KoinX today and make your crypto tax process seamless, compliant, and stress-free.
Frequently Asked Questions
What Happens If I Miss the Quarterly Tax Reporting Deadline?
Missing the quarterly deadline for crypto capital gains reporting may result in penalties or fines imposed by Receita Federal. These can include a fixed monthly fee or a percentage-based fine depending on the transaction value. Timely submission is crucial to avoid these penalties and ensure legal compliance.
Are Airdrops and Forks Taxed as Capital Gains?
Airdrops and forks are not taxed as capital gains in Brazil. They are categorized as income at the time of receipt and are subject to personal income tax. However, if those assets are later sold at a profit, the difference becomes subject to capital gains tax at the applicable rate.
Do I Need to Report Gains If I Only Traded Crypto-to-Crypto?
Yes, even crypto-to-crypto trades must be reported to Receita Federal as they are considered taxable events. Each trade must be valued in Brazilian real (BRL) at the time of the transaction, and any resulting gains are subject to the 17.5% capital gains tax.
Can I File My Crypto Taxes Through Brazil’s Standard Income Tax Portal?
No, capital gains from cryptocurrency must be reported using specific systems such as GCAP and DARF, not the standard IRPF platform used for income tax. These systems are designed to process and calculate gains on asset transactions, including digital assets like crypto.
Are NFTs Covered Under the Capital Gains Tax Rules?
Yes, NFTs fall under Brazil’s capital gains tax regime when sold for a profit. Just like cryptocurrencies, any profit from NFT transactions must be reported quarterly. The same 17.5% flat tax applies, and the reporting requirements include transaction records in BRL and timestamps.
