Brazil took another step towards accepting digital currencies and accordingly Paying taxes with cryptocurrencies in Brazil It will start in 2023.

The Brazilian city of Rio de Janeiro is allowing taxpayers to make crypto payments through third-party service providers.

Read more: The future of digital currencies in 2022

Paying taxes with cryptocurrencies in Brazil

The city of Rio de Janeiro is looking for cooperation with companies active in the field of cryptocurrency to launch a tax payment plan with cryptocurrencies. Brazilian users will be able to use digital currencies alongside fiat currency to pay their taxes starting in 2023. The move makes Rio the first city in Brazil to accept digital assets as a tax payment method.

According to expectations, taxpayers can with more than one A tax-paying crypto-asset do yourself Companies wishing to provide services must be legally registered and comply with the requirements of the Securities and Exchange Commission (SEC).

Companies operating in Brazil Digital currency payment services and convert cryptocurrencies into fiat currency. Local fiat funds are transferred at no additional cost to taxpayers. Mayor Eduardo Paes said in a statement:

Rio de Janeiro is a global city. We follow technological and economic developments in the world of digital financial assets. We look to the future and want to become the capital of innovation and technology of the country. Rio de Janeiro is the first city in Brazil to offer the option of paying taxes with cryptocurrencies.

Tax payment history using cryptocurrencies

Other cities in the world are also possible in the past Paying taxes with crypto had made it possible In September, the US state of Colorado began accepting crypto as a tax payment method. Arizona, Wyoming, and Utah state legislatures have also introduced bills to accept tax payments in the form of digital currencies to varying degrees.

Rio de Janeiro is another example of Brazil’s efforts to expand the adoption of digital currencies in the country. In August, the number of companies active in the field of digital currencies in Brazil reached its highest level. The local tax organization has registered 12053 unique organizations. These organizations recorded cryptocurrencies in their balance sheets.

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Source: cointelegraph