CRYPTOACTIVE: Understand the regulation
It’s published on the Official Diary of Brazilian Union (DOU) of 07/05/2019 the IN (Normative Instruction) n° 1888/2019, which institutes and regulates the obligatory monthly provision of information on cryptoactive operations to Brazil’s Federal Revenue.
The first provision of information shall be delivered till the last working day of September 2019, referring to operations occurred in August 2019. These information shall be digitally submitted on Virtual Service Centre (e-CAC) of Brazil’s Federal Revenue and signed using a digital certificate.
According to the IN, cryptoactive is considered any digital value representation, titled in it’s own unit account, which price can be expressed in local or foreign sovereign currency, transacted electronically using encryption and distributed registration technologies, that can be used as a way of investment, instrument of value exchange or access to services and doesn’t constitutes legal tender currency.
It’s also important to define the concept of Exchange, which is a legal person that offers services in cryptoactive operations as intermediation, negotiation, and custody, even if it’s not a financial institution.
Who is obliged: an Exchange domiciled in Brazil for tax purposes; the natural or legal person resident or domiciled in Brazil when has executed operations above R$30.000,00 with a foreign Exchange and when has executed operations without an Exchange.
Sanctions: the natural or legal person that omit information, doesn’t submit or submit inaccurate information will be subject to pay fines, which can vary from R$100,00 to R$1.500,00 per month or a month fraction.
Beside the monthly obligation, the cryptoactive Exchange for tax purposes in Brazil must also provide information on balances of fiduciary currency, balances of each type of cryptoactive and the cost for obtaining cryptoactives in reais for every of its services users. These information will relate to the date of 31st December of each year and the deadline is the last working day of January of the following calendar year.
In case the natural or legal person observes the information provided contains some mistake, inaccuracy or omission, may rectified it upon presentation of an amending statement.
Por Cindy Rocha