A major Brazilian bank is offering a convenient new option for taxpayers to pay their debts using cryptocurrencies.
According to a statement published by Brazilian bank Banco do Brasil on Feb. 11, it is now “possible” for Brazilian taxpayers to pay their tax bill with cryptocurrency in a joint initiative with Brazil-based crypto company Bitfy.
It is available to Brazilians with cryptocurrencies in the custody of Bitfy, which will act as a “collection partner” for the large Brazilian bank.
He pointed out that, In addition to the convenience it brings to customers, it could “broaden” use and access to the ecosystem of digital assets with “national coverage”, while having the convenience of a reputable bank offering consumer protection.
Lucas Schoch, founder and CEO of Bitfy, added that the “new digital economy is a catalyst for a future full of benefits.”
According to the statement, cryptocurrency users will experience a simple process, in which tax details will be displayed along with the amount of reais, the official currency of Brazil, that must be converted to the chosen cryptocurrency to pay the bill.
Taxpayers will access their tax bill by scanning a barcode, similar to paying for a “boleto,” a popular payment method in Brazil.
This move comes after the Brazilian city of Rio de Janeiro began accepting cryptocurrencies as tax payments in October 2022.
In December 2022, Brazil approved a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country.
The law will probably go into effect in June of this year.
Previously, in May 2022, Citizens of Brazil were told they would have to pay taxes on in-kind cryptocurrency transactions, for example, exchanging Bitcoin (BTC) for Ether (ETH).
However, not all crypto investors in Brazil need to declare their operations. The regulator establishes that only investors who trade more than 35,000 reais (about USD 6,711) in cryptocurrencies must pay income tax.
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