Cryptocurrency Tax: Brazil Maintains Exemption for Transactions Up to R$ 35,000

The Chamber of Deputies rejected, with 251 votes against 193, Provisional Measure 1,303, which aimed to eliminate income tax exemption for cryptocurrencies in Brazil. The recent vote marks a turning point for the Brazilian digital asset market and reaffirms the favorable tax regime for small investors.

The approval maintains the current tax structure for cryptocurrency transactions, significantly benefiting the approximately 25 million Brazilians who invest in assets like Bitcoin (BTC), Solana (SOL), and other digital currencies.

Vote overturns provisional measure with majority support

The result reflects support from various segments of the crypto market. The 58-vote difference demonstrated consensus in the Chamber on the importance of keeping the sector competitive in Brazil. The vote against MP 1,303 indicates that Congress recognizes the strategic value of the cryptocurrency industry for Brazil’s digital economy.

Cryptocurrency tax: tax rate structure maintained

The decision preserves the progressive tax regime for cryptocurrency transactions:

• Full exemption for gains up to R$35,000 per month
• Progressive rate of 15% to 22.5% for profits above this limit

This model benefits over 90% of Brazilian investors, who conduct operations within the exempt limit. The structure ensures small and medium investors retain their favorable tax position, while applying gradual taxation only to larger gains.

Legal security and regulation strengthen the sector

The market responded to the decision with optimism. Institutions like Mercado Bitcoin highlighted that the vote “benefits more than 90% of participants and supports sector development in Brazil.” Analysts such as those from Boost Research emphasized that the rejection of MP 1,303 “avoids a blow to the Brazilian crypto industry.”

The decision coincides with the Central Bank’s progress in regulating virtual asset platforms (PSAVs), creating an environment with legal certainty, operational integrity, and regulatory maturity. This context positions Brazil as a competitive crypto hub in Latin America, attracting and retaining investors in the regulated market.

The outcome shows that the country is maturing in its policies for the cryptocurrency sector, balancing innovation, investor protection, and tax revenue through dialogue among government, legislators, and the market.