Taxpayers in Brazil have only a few days left to file their annual tax returns. Investors who have more than 5,000 actual cryptocurrencies in 2020, slightly less than $ 1,000, are obliged to report the funds on their income tax declarations this year. Brazilians who fail to do so on time face heavy fines.
Tax filing deadline in Brazil expires at midnight on May 31
Brazilian citizens are required to file their 2021 income tax returns before 1 June. This year, the deadline was extended by a month due to the coronavirus pandemic that has hit South America’s largest economy. Portal Du Bitcoin recently warned readers that failure to report revenue and tax obligations would result in fines starting at approximately $ 30 and up to 20% on tax payable.
Taxpayers Those who have more than 5,000 real-value coins in their wallet or $ 960 at the current exchange rate should report to crypto holdings Received federal, The country’s Internal Revenue Service. This year, the tax agency adopted a dedicated code on the Property and Rights form for bitcoin (B T c) – 41, other cryptos like ETH, BCH, Xrp, And LTC – 82, and Digital Token – 89.
Although Brazilians are obliged to report crypto, not all of them will have to pay tax as it is levied on capital gains exceeding the monthly exemption limit of 35,000 reals (approximately $ 6,700). Crypto profits above the threshold will be taxed capital gains according to the progressive scale, the news outlet elaborated.
Brazilians Who File Their Tax Declarations On Time Will Avoid Penalties
Submitting a declaration that is not entirely accurate is a lesser evil than missing a deadline. Brazilians who reported their assets on time are allowed to make corrections later, but those who fail to file their tax returns before 1 June will face penalties. And citizens who intentionally evade taxation can be fined up to 150% of the tax amount. Ana Paula Rabello, who specializes in crypto accounting, is quoted as saying:
A taxpayer who has not yet filed his declaration needs to remain calm and do nothing in haste to avoid the risk of paying more or less tax. Now all that needs to be done is to start preparing the information immediately.
Rabello stressed that timely filing of tax returns is necessary, or that taxpayers will have problems with banks and the revenue service if they try to use nonreported cryptocurrencies. “Crypto investors should always remember that undeclared bitcoins cannot be used,” warned the accountant who provided other tax tips for free e-book Published by the portal Du Bitcoin, in which Rabello advises Brazilians to report their crypto holdings on their 2021 income tax returns.
What regulations govern cryptocurrency reporting and taxation in your country? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Vicky Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services, or companies, or a recommendation or endorsement of any products, services or companies. Bitcoin.com Does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss in connection with the use or reliance of any of the materials, goods or services mentioned in this article.