As the period for submitting the Income Tax declaration approaches, which runs between April 1st and June 30th, 2025 and refers to income obtained in 2024, several doubts arise among taxpayers, and one of the most frequently asked questions is related to with cryptoactives, such as bitcoin, and their taxation.
How are cryptoassets classified?
Cryptoassets, also called “virtual assets”, represent values or rights in digital format, which can be transferred and stored electronically. They are based on blockchain technology, a decentralized registry with no central administration. Brazilian legislation establishes specific rules for the taxation of cryptoassets, depending on the type of operation and the purpose of its use.
Taxation of cryptoassets in Income Tax
As explained by , income from crypto assets must be declared in different categories, depending on the nature of the transactions carried out:
- Category G: Capital Gains and Equity Increases
- Profits obtained from the sale of cryptoactives, such as bitcoin, are considered capital gains and taxed at a rate of 28%.
- Gains from crypto assets held for more than one year are exempt from taxation, as long as the taxpayer is a tax resident in Portugal.
- Category B: Commercial or Professional Activity
- Income earned through activities such as frequent trading or mining is classified as independent activity income.
- Taxpayers can opt for the simplified regime, in which taxation is based on a percentage of income, or organized accounting, with greater detail and control of expenses.
- Category E: Capital Income
- Passive earnings, such as interest or rewards from staking, are taxed as capital income, also at a rate of 28%.
Recommendations for taxpayers
Taxpayers should carefully evaluate their tax situation and consult an accountant or tax specialist in more complex cases, such as intensive trading or income from multiple sources.
For declarations in Category G, earnings must be reported in Annex G. For Category B, Annex B is used, indicated for income from professional or commercial activities. Finally, for Category E, passive earnings must be entered in Annex E.
Conclusion
IRS taxation of cryptoassets, such as bitcoin, is mandatory and depends on the type of transactions carried out. Compliance with these obligations is essential to avoid problems with the Tax Authority. Furthermore, it is recommended to keep detailed records of transactions and proof of ownership to facilitate the declaration process.
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