How to Report Bitcoin Gains in Brazil: Your Complete Tax Guide

Understanding Bitcoin Taxation in Brazil

In Brazil, cryptocurrencies like Bitcoin are classified as “financial assets” by the Federal Revenue Service (Receita Federal do Brasil – RFB). This means profits from selling Bitcoin are subject to capital gains tax under Normative Instruction 1,888/2019. Whether you’re a casual investor or active trader, reporting gains isn’t optional—it’s mandatory when transactions exceed monthly thresholds. Non-compliance risks hefty penalties, making it crucial to understand your obligations.

Who Must Report Bitcoin Gains?

You must report Bitcoin gains if your monthly crypto transactions exceed BRL 35,000 (as of 2023). This includes:

• Selling Bitcoin for fiat currency (BRL/USD)
• Trading Bitcoin for other cryptocurrencies
• Using Bitcoin to purchase goods/services

Even below this threshold, maintain records—RFB requires all transactions reported annually via the Capital Gains Declaration (GCAP).

Calculating Your Bitcoin Taxable Gains

Brazil uses the FIFO (First-In-First-Out) method for cost basis calculation. Follow these steps:

1. Determine acquisition cost: Purchase price + transaction fees
2. Identify sale proceeds: Amount received after sale fees
3. Calculate gain: Sale Proceeds – Acquisition Cost

Example: Bought 0.5 BTC for BRL 20,000 (fee: BRL 100). Later sold for BRL 30,000 (fee: BRL 150).
Cost Basis = 20,000 + 100 = BRL 20,100
Proceeds = 30,000 – 150 = BRL 29,850
Taxable Gain = 29,850 – 20,100 = BRL 9,750

Step-by-Step Reporting Process

1. Track Transactions: Log every buy/sell with dates, amounts, and fees using spreadsheets or crypto tax software.
2. Calculate Monthly Gains: Sum all gains from disposals each month. Ignore months with total transactions ≤ BRL 35,000.
3. Generate DARF: For taxable months, create a Federal Tax Collection Document (DARF) via RFB’s system:
   • Tax Code: 6015 (capital gains from crypto)
   • Payment deadline: Last business day of the following month
4. Pay Taxes: Settle DARF via banking apps, RFB website, or authorized banks.
5. Annual Declaration: Report all transactions in your Income Tax Return (DIRPF) each April.

Tax Rates and Exemptions

Bitcoin gains face progressive taxation:

• 15% on gains up to BRL 5 million per month
• 20% on gains exceeding BRL 5 million monthly

No tax applies if monthly transactions are ≤ BRL 35,000. Losses can offset future gains indefinitely.

Deadlines and Penalties

Critical dates to remember:

• Monthly DARF: Paid by the last business day of the month following the sale
• Annual DIRPF: Filed between March-April each year

Missed payments incur:

• 0.33% daily interest
• 1% monthly fine (capped at 20%)
• Potential audits or legal action

FAQs: Reporting Bitcoin Gains in Brazil

Q: Is Bitcoin legal in Brazil?
A: Yes, but gains are taxable. RFB monitors exchanges via mandatory reporting.

Q: Do I pay tax if I transfer Bitcoin between wallets?
A: No—taxes apply only when disposing of Bitcoin (selling, trading, spending).

Q: How are mining rewards taxed?
A: Treated as ordinary income at market value when received. Later sales incur capital gains tax.

Q: Can I deduct trading losses?
A: Yes, losses reduce taxable gains. Unused losses carry forward indefinitely.

Q: What records should I keep?
A: Preserve exchange statements, wallet addresses, and DARF receipts for 5 years.

Q: Are DeFi or NFT transactions taxable?
A: Yes—all crypto asset disposals follow the same BRL 35,000 threshold rule.

Tools and Resources

Simplify compliance with:

• Tax Software: Koinly or Cointracker (supports RFB reports)
• RFB Platforms: GCAP for declarations, e-CAC for DARF generation
• Professional Help: Consult a contador (accountant) specializing in crypto

Always verify rules at gov.br/receitafederal—regulations evolve rapidly!

By mastering these steps, you’ll avoid penalties and invest with confidence in Brazil’s dynamic crypto landscape.