How to Declare Your Cryptocurrencies on Income Tax 2025: Complete Guide for Investors

In recent years, the crypto market has grown exponentially, sparking the interest of investors and attracting the attention of tax authorities in Brazil. For those who wish to remain compliant with legislation and avoid issues with the Receita Federal, understanding the tax obligations related to cryptocurrencies has become essential.

The tax regulation of crypto assets does not represent a limitation on the freedom to use these assets, but rather an official recognition of their importance in the financial system. The legal recognition of these assets by regulatory authorities has allowed for significant advances in the market, such as the approval of Bitcoin and Ethereum ETFs, with ongoing discussions for Solana.

This guide provides detailed information on how to correctly declare your cryptoassets on the 2025 Income Tax, ensuring your compliance with Brazilian tax requirements.

Tax Rules for Cryptocurrencies in Brazil

The Brazilian Federal Revenue classifies cryptocurrencies as assets, making it mandatory to declare them in the Income Tax. The main rules include:

• Mandatory declaration: Holding crypto assets with a total value exceeding R$ 5,000 must be declared.
• Transaction Information: Operations above R$ 30,000 must be reported via the National Collection system.
• Taxation on gain: Taxation occurs only when there is a sale with profit.

It is important to understand that mere possession of cryptocurrencies already requires declaration, regardless of whether they have been traded, as long as they reach the established minimum value.

Step by Step for Cryptocurrency Declaration

1. Document Organization

Before starting the declaration process, gather all the necessary documentation:

• Purchase and sale receipts
• Transaction statements on trading platforms
• Records of invested amounts
• Documentation of realized gains or losses

Platform Tip: Regulated platforms provide tax reports that significantly simplify the declaration process, allowing for automatic export of transaction histories in formats compatible with the declaration.

2. Use of Federal Revenue Software

Download the official program from the Federal Revenue for Income Tax declaration. In the form, information about cryptocurrencies must be entered in the "Assets and Rights" section.

3. Correct Codes for Declaration

To ensure the accuracy of the statement, use the following specific codes:

| Type of Crypto Asset | Code in Declaration | |---------------------|----------------------| | Bitcoin | 08 | | Other cryptocurrencies | 89 | | NFTs and other digital assets | 99 |

4. Details of Information

In the description of the asset, include detailed information such as:

• Trading platform used
• Amount of coins acquired
• Accurate data for the purchase operation
• Amount in reais paid at the time of acquisition

Technical Note: When declaring assets on different platforms, each position must be recorded separately, clearly identifying the custody of the assets to avoid tax inconsistencies.

5. Capital Gains Tax Calculation

Capital gains tax applies when there is a profit from the sale of cryptocurrencies, with progressive rates:

| Profit Amount | Applicable Rate | |----------------|-------------------| | Up to R$ 5 million | 15% | | Between R$ 5 and R$ 10 million | 17.5% | | Between R$ 10 and R$ 30 million | 20% | | Above R$ 30 million | 22.5% |

Exemption: Profits of up to R$ 35,000 per month are exempt from taxation.

6. Use of the GCAP Program

For cases with taxable profit, it is necessary to fill out the Capital Gains Calculation Program (GCAP). After filling it out, the data can be exported directly to the Income Tax system.

Support tool: Some advanced trading platforms offer integrations that automatically calculate capital gains and generate files compatible with GCAP, significantly simplifying this process.

Recommended Practices for Tax Compliance

To ensure full compliance with tax requirements and avoid future issues:

Detailed Transaction Record

Keep meticulous records of all operations carried out on trading platforms and digital wallets. This history is essential to justify the declared amounts and respond to any inquiries from the Federal Revenue.

Accurate Conversion to Reais

All transactions must be converted to Brazilian reais, using the official exchange rate of the coin on the exact date of the operation. Documents that prove these conversion rates must be filed.

Attention to Deadlines

The capital gains tax must be paid by the last business day of the month following the transaction. Failure to meet this deadline may result in significant fines and interest.

Role of Trading Platforms in Tax Compliance

Regulated trading platforms operating in Brazil have a legal obligation to report all transactions made by their users to the Federal Revenue Service. This direct communication between platforms and tax authorities creates a system of cross-checking information.

The most structured trading platforms offer specific tools to assist investors in the tax declaration process, including:

• Consolidated operation reports
• Automatic capital gain calculations
• Data export in a format compatible with the declaration

Choosing platforms with advanced tax features can significantly simplify the declaration process and reduce the risk of inconsistencies.

Penalties for Non-Declaration

The omission of crypto assets in the Income Tax declaration or the provision of incorrect information may result in:

• Fines between 1.5% and 3% on the value of undeclared transactions
• In more serious cases of tax evasion, legal proceedings may be initiated.
• Blocking of assets and accounts to ensure the payment of tax debts

The prior regularization, even after the deadline, usually results in lesser penalties than when the irregularity is identified by the Federal Revenue during audits.

Possible Changes to the Rules for 2025

With the growing adoption of cryptocurrencies, a continuous evolution in tax rules is expected. Brazilian authorities have shown interest in:

• Implement more sophisticated transaction monitoring systems
• Increase the accuracy in identifying undeclared operations
• Develop specific mechanisms for the taxation of new types of digital assets

For long-term investors, staying updated on regulatory changes and ensuring compliance from the outset represents not only a legal obligation but also a financial strategy that can prevent unnecessary costs in the future.

The tax regularization of crypto assets is a fundamental element for those looking to invest securely and build a solid digital wealth. By keeping their declarations up to date and choosing platforms that offer adequate tax support, the investor can focus on the opportunities in the crypto market without worries about tax liabilities.