Income Tax 2023: how to declare NFTs and cryptocurrencies in the IR?

The profits deriving from this type of operation, as well as the ownership of the assets, must be detailed in the annual tax return.

who owns NFTs or investments in cryptocurrencies need to include the goods in the Personal income tax return (DIRPF) 2023also with Irpef exemption for sales values ​​up to BRL 35 thousand a month.

NFTs are a record of ownership of a digital asset, which can be a work of art or a simple video. The value given to them is associated with a subjective impression of the buyer. However, often there is no intention to sell, but only to possess the person who acquired the property.

Either way, there is a market for buying and selling the business. The earnings in this type of operation, as well as the ownership of the assets, must be decomposed into the Annual tax return. Be careful, as there is a tax on some token sales.

To be taxed, NFTs enter the same area as cryptoactive and das virtual currencies. Only trades over BRL 35,000 per month are taxable. It is important to remember that the amount of R$ 35,000 is the sum of everything that has been sold, month by month. That is, the sum is valid for NFTs and also for virtual currencies. And the amounts that exceed R $ 35,000 are classified as capital gains.

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In this way, income tax is charged on the earnings, not just on what exceeds R $ 35,000. If the income is, for example, R$ 50,000, the tax will be charged on the total amount.

In case of sales, they must be reported during the year in the Ganho de Capitals program (GCAP) of the Federal Revenue Agency. There you can issue the Federal Revenue Collection Document (DARF) for the payment of the tax. The DARF must be issued on the last day of the month following the cryptocurrency sales. Exempt values ​​must also be declared. The recommendation is that any value, even if exempt, be declared in the annual adjustment.

NFTs, like virtual currencies, must be included in the “Assets and Entitlements” tab. The group used is “Cryptoassets” and the selected code must be the most suitable for the declared asset. In the case of NFTs, it is code 10, “Cryptoassets known as NFTs”.

If the income has been declared in GCAP, the master data can be imported into the Revenue program for the 2023 Income Declaration.

Now that you know how to declare NFTs and cryptocurrencies, understand what happens if you don’t declare crypto assets in your 2023 income tax.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.