Taxpayers in Brazil who had a bit over 5,000 reals worth of crypto in 2020, which is a bit less than $1,000, need to hurry up and report them on their income tax declarations for 2021 unless they want to deal with a big fine.
The deadline ends on May 31st, at midnight. The deadline was actually pushed back by a month as a result of the COVID-19 pandemic which hit Brazil really hard. The fines for not reporting revenues begin at $30 and go up to 20% of the tax due.
Brazilians have to report the crypto holdings to Receita Federal. Not all of those who report the ownership of crypto will have to pay a tax since it is levied at capital gains exceeding the monthly exemption limit of 35,000 reals (about $6,700). Only the profit made above that limit will be charged under the capital gains tax.
The deadline is so important that even information that is not entirely true is accepted as you can make corrections afterward. But, if you do not respect the deadline, you will face penalties, while, if you try to evade taxation, you can reach a fine of about 150% on the tax amount.
“A taxpayer who has not filed their declaration yet needs to remain calm and do nothing hastily to avoid the risk of paying more or less tax. What needs to be done now is to immediately start preparing the information,” declared Ana Paula Rabello, a specialist in crypto accounting.