Brazil: Ministries of Finance and Management and Innovation adopted Measure providing for taxation of financial investments and virtual assets including imposition of 17.5% flat rate on capital gains from digital assets (Measure No. 1,303)

On 10 June 2025, Brazil’s Ministry of Finance and Ministry of Management and Innovation adopted a Measure providing for taxation of financial investments and virtual assets, including imposition of a 17.5% flat rate on capital gains from digital assets. The measure introduces reforms to the taxation of financial investments, virtual assets, and online betting. It sets a unified 17.5% income tax rate on most financial investments and virtual assets, repeals regressive tax rates, and raises the tax on interest on equity to 20%. Furthermore, it tightens the Social Contribution on Net Profit rules for financial institutions and imposes a 5% withholding tax on new securities issued after 31 December 2025.