Federal Revenue Service Issues Normative Ruling Regarding The Obligation Of Providing Information Of Operations With Cryptoassets

On May 7th, 2019, the Federal Revenue Service published Normative Ruling N. 1.888, which established and regulated the obligation of providing information of operations with cryptoassets to the Federal Revenue Service.

Following the trend of international tax policy, this is another chapter of the evolution of tax inspection procedures considering the digital economy, whose major guideline is to bring more transparency to digital transactions, as the more reliable is the environment, the greater the confidence of potential investors.

In fact, even though this is another tax ancillary obligation, which may involve increase in compliance costs, this new tax regulation tends to be beneficial to this digital transactions environment. Accordingly, the obligation of providing all relevant details regarding transactions with cryptoassets may assure additional legitimacy, credibility to the players and, ultimately, attract new investors, with different profiles (including, for instance, sectors that tend to be more conservative, such as financial institutions or major corporate groups).

According to the new rules, information shall be provided through the Coleta Nacional system, made available in the Federal Revenue System's virtual center of services (eCac). The layout will be defined in a specific act to the published in 60 days counted from the publication of the Normative Ruling.

Normative Ruling also indicates the definition of some concepts:

Cryptoasset: the digital representation of value indicated in its own unit, which price can be expressed in local or foreign currency, electronically traded by the use of cryptography and of distributed ledger technologies, that can be used as investment method, instrument for the transfer of values or access to services, and that is not qualified as a currency; and TAX & CUSTOMS MAY/2019 PRACTICE AREA Tax & Customs For further information, please send a message to news@veirano.com.br This document was prepared exclusively for informational purposes and does not constitute legal advice or an invitation to an attorney-client relationship. If you have any questions, our lawyers are available for clarification. It is forbidden to distribute, reproduce or transmit this document, in full or in part, without the prior consent of Veirano Advogados. © 2019 Veirano Advogados. All rights reserved. CLIENT ALERT veirano.com.br Rio de Janeiro São Paulo Porto Alegre Brasília Exchange of cryptoasset: the legal entity...