Fine Options for Tax Rebates and More With Cryptocurrency

Published On July 30, 2019 | By Danny White | Home

The income tax filing season has begun and the IRS has already made available the 2019 Income Generator Program (PDG). And yes, although there is no regulation of its own yet, you need to declare your cryptocurrencies in the Income Tax Return. The insulation rebates will be perfect in this case.

The declaration of digital currencies, such as Bitcoin, has been in place since 2019. If you are in a position to be obliged to declare, you need to tell your tax authorities about your cryptocurrency.

How to declare

Go to the Goods and Rights tab, which is within the “Declaration Sheets” and click “New”. Enter the code “99 Other Goods and Rights”. Attention! The taxpayer must always declare the purchase value of the coins. If there is a negative change in value and the amount is the same, there is no need to indicate the loss of assets.

We bought and did not sell. Should we declare?

As compared to a financial asset, virtual currencies that, together, reach the minimum value of R $ 5,000, must be included in the Assets and Rights Form, under the code “99 – Other Assets and Rights”.

For example, if you bought Bitcoins in March / 2018 for $ 10,000 and did not sell until December, this is the number that should be submitted to the IRS. In these cases, the taxpayer leaves the field “Situation on 12/31/2017” as zero and the field “Situation on 12/31/2018” as R $ 10,000.

Multiple purchases during the year

This also applies to the sum of all purchased cryptocurrencies. Which it means if you bought $ 25,000 in Bitcoins and $ 15,000 in ether, the statement should occur. The balance on 12/31 will be R $ 40 thousand.


The Discrimination field should contain all possible information about the acquisition: amount of cryptocurrencies, brokerage house – with CNPJ – and quotation of the day. If this is the first time you have declared but already had cryptocurrencies in 2017, make a rectifying statement.

We bought and sold. How to declare?

Taxation only occurs if there are monthly gains between the purchase and sale of currencies and if the amount sold exceeds the amount of R $ 35 thousand in the month. The income statement and payment of the DARF must be made through the Capital Gain Calculation Program 2018 at the end of the month following the sale.

Thus, if the taxpayer buys R $ 50 thousand in Bitcoins in February and resells in August for R $ 100 thousand, the profit, over R $ 35 thousand, must be declared by the end of September. If the declaration is not made, there is a period of 5 years for settlement, under fines and interest. The IRS suggests that the correction take place before the Annual Adjustment Statement.

Currencies acquired abroad

Cryptocurrencies purchased abroad are declared in the same way and under the same rules as they have the same nature as cryptocurrencies purchased in Brazil. This also applies to crypto-crypto transactions and P2P purchase.

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