Source: PortaldoBitcoin Original Title: Federal Revenue Service discloses new cryptocurrency reporting rules; see what changes. Original Link:

Brazilian tax authorities release new cryptocurrency reporting rules

A week later, the Brazilian Central Bank announced new cryptocurrency market regulations, and this Monday (the 17th) it was the turn of the tax authority (Receita Federal) to update the reporting obligations for investors and industry businesses regarding digital asset transactions.

The tax authority issued Normative Instruction No. 2.291, which initiated the declaration system for crypto assets (DeCripto), replacing the rules established by Instruction 1888 in 2019.

The agency has been updating its crypto disclosure rules since 2024, when it held a public consultation on DeCripto, and Brazil also signed a multilateral agreement for automatic information exchange based on the international standard CARF (Crypto Asset Reporting Framework).

According to the text, some obligations take effect immediately today, but the reporting will start in 2026, when new monthly and annual forms will be introduced to report cryptocurrency transactions.

Who needs to declare cryptocurrency transactions in Brazil?

According to the new rules established by DeCripto, exchanges and cryptocurrency service providers that have a presence, management, registration, a “.br” domain, or are specifically targeting the Brazilian public must report their customers' cryptocurrency transactions to the tax authorities.

One of the main changes compared to the previous rules is the inclusion of foreign companies in the scope of transactions that must be reported to tax authorities.

The new regulations stipulate that there are Brazilian cryptocurrency asset service providers in the following situations:

• Use “.br” domain for activities or transactions;

• Maintain business agreements with Brazilian entities — or with subsidiaries or affiliates — to enable the receipt of local funds from domestic residents;

• Advertising to Brazilian residents, clearly offering services to the national public.

This obligation also applies to individuals and legal entities residing in Brazil when conducting cryptocurrency transactions:

• Through overseas service providers;

• On decentralized platforms; or

• No intermediaries, conducted directly between users.

In these cases, reporting to the tax authorities is mandatory, as long as the monthly transaction total exceeds 35,000 Brazilian reais (previously 30,000 reais).

Which transactions must be declared?

Cryptocurrency transactions that must be reported within the DeCripto range include: buying and selling, crypto-to-crypto exchanges, airdrops, staking rewards and mining, crypto loans, payments and purchases of goods/services (especially purchases exceeding $50,000 equivalent), transfers to non-custodial wallets, involuntary losses, primary issuances, and crypto asset reference redemptions.

What data must exchanges report?

Cryptocurrency service providers must submit two declarations to tax authorities - a monthly declaration and an annual declaration.

Monthly declarations should detail each transaction, including:

• Transaction date and type;

• User identification, in compliance with anti-money laundering procedures (AML/KYC);

• Cryptographic assets used;

• Quantity, expressed in units;

• Value of the Brazilian Real, excluding fees; and

• Service fee, if any.

Annual reporting is based on the balance as of December 31, and will require information consolidated by the user, such as:

• Fiat Balance (Brazilian Real);

• The balance of each cryptocurrency asset, expressed in units; and

• Cost incurred, as reported by the customer.

What data must individual users report?

Users who do not use exchanges and comply with the obligation to report to tax authorities—individuals or legal entities—must report a detailed dataset of each transaction.

Required information includes:

• Transaction date and type;

• Counterparty data, including name, address, tax jurisdiction, and CPF, CNPJ or NIF (tax identification number);

• The cryptocurrency assets used and their amounts, precise to ten decimal places;

• Value of Brazilian Real, excluding fees;

• Fees charged, if any; and

• Identification of foreign service providers or decentralized platforms, if applicable.

For on-chain transactions executed atomically via smart contracts, users can choose to report a unique transaction hash—referred to as atomic contract composability—rather than detailing every step of the process.

How to declare?

Submissions should be made through the national data collection system, which can be accessed at the electronic service center, using the ICP-Brasil digital signature. The DeCripto layout will be determined by the statutory notice of the policy execution committee's declaration and should be published within 45 days after this date.

The deadline for submitting monthly declarations is the last working day of the following month, submitted separately by transaction. Annual declarations should be submitted by the last working day of January, including balance information by user and CARF comprehensive data.

Those who miss the deadline will face fines. For individuals, the amount is 100 Brazilian Reais per month. For legal entities under the simplified tax regime, exemptions or tax exemptions, startups, or entities taxed based on presumed profits, the fine is 500 Brazilian Reais per month. Other legal entities will pay 1,500 Brazilian Reais per month.

Errors or omissions may also result in penalties. Companies may be fined 3% of the transaction value, with a minimum of 100 Brazilian Reais, while individuals must bear 1.5% of the transaction value.

Failing to comply with the summons will result in a fine of 500 Brazilian Reais for each calendar month. However, there are provisions for reductions, such as a 50% discount if the taxpayer corrects the situation before the formal proceedings, and a 70% discount for simplified tax regime businesses in certain cases.

In cases where money laundering is indicated, tax authorities may notify the federal prosecutor's office.

When does it take effect?

The new rules take effect immediately on general provisions.

The annual report summary of service providers (CARF) will take effect from January 1, 2026.

The monthly transaction submissions by service providers and users, as well as the repeal of normative directives 1.888/2019 and 1.899/2019, will begin on July 1, 2026.