On June 11, 2025, the Brazilian government published Provisional Measure No. 1303 (MP 1303), which imposes a flat 17.5% tax on all capital gains from cryptocurrency transactions. This measure removes previous tax exemptions that benefited small-scale investors.

Previously, Brazilian residents were exempt from income tax on crypto sales up to $6372 per month. Gains exceeding that threshold were taxed progressively, from 15% up to 22.5% for volumes over BRL 30 million. The new measure abolishes all exemptions and applies uniformly to all investors, regardless of transaction size.

According to Portal do Bitcoin, this change will likely increase the tax burden for small traders, while large investors may experience a reduction in their tax liability compared to the prior system. The measure also includes crypto assets held outside exchanges or in foreign jurisdictions.

Capital gains must now be reported quarterly. Losses can be used to offset gains from the previous five quarters — a time frame that will be shortened starting in 2026.

Tax rules for corporate entities under Brazil's actual and presumed profit regimes remain unchanged. These entities are still prohibited from deducting losses from crypto-related operations.

Beyond cryptocurrencies, the measure also targets fixed-income financial products such as Agribusiness Credit Letters (LCA), Real Estate Credit Letters (LCI), and receivables certificates (CRI, CRA), which will now be taxed at a 5% capital gains rate. Online betting income will be taxed at 18%, up from 12%, while taxation of major prizes remains unchanged.

MP 1303 was introduced by the Ministry of Finance as an alternative revenue-raising strategy following backlash against a previously proposed increase in the Financial Transactions Tax (IOF).

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