Rio de Janeiro, a Brazilian city, announced that it would accept crypto payments for property taxes. According to an October 11 decree, the city is looking for crypto firms to operate its tax property seasoning in 2023. This will enable taxpayers to pay taxes using crypto as well as fiat currency. The decree is titled 'IPTU 2023 poderá ser pago por meio de criptomoedas' (IPTU 2023 can be paid through crypto assets).
With this move, Rio became the first Brazilian city to accept digital assets as a tax payment. The decree stated that companies interested in participating in this initiative must be registered in the city and meet all requirements imposed by the Brazilian Securities and Exchange Commission (SEC). Each taxpayer will be able to deposit funds in multiple crypto assets. The payments will then be converted to Brazilian Reals by the hired crypto firms. The municipality will receive 100 per cent of the value in local currency under the measure at no additional cost to the capital.
Taxpayers are expected to be able to pay with more than one crypto asset, and other types of taxes will be enabled in the future. In a public statement, the mayor of Rio, Eduardo Paes, said, "Rio de Janeiro is a global city. Therefore, we are following technology and economic advances in the universe of digital financial assets. We have a look to the future, and we want to become the country’s capital of innovation and technology. Our city is the first in Brazil to offer the taxpayer this type of payment."
IPTU (Imposto sobre a propriedade predial e territorial urbana, or Urban Building and Land Tax) payments on real estate in Brazil are calculated by calculating its market value. This tax is levied on all United States residents, generating revenue for state governments. Taxpayers have the option of paying all of their IPTU obligations in one annual lump sum or in monthly instalments. In Brazil, IPTU payments on real estate are calculated by determining its market value. This tax is levied on all residents in the United States, and it generates revenue for state governments. Taxpayers have the option of paying all of their IPTU obligations in one annual lump sum or in monthly instalments.
The list of accredited companies will be available on the Municipal Treasury's virtual page, as well as on the Municipal Department of Finance and Planning's website. Andrea Senko, Secretary of Finance and Planning, stated that the use of crypto assets as a form of payment would initially be limited to IPTU. However, the intention is to expand it to other taxes. She said, "We want to assess how the city will behave with this new payment method so that we can include it in other taxes in the future."
It is worth noting here that, according to the Federal Revenue of Brazil report, the number of organisations declaring their crypto holdings has increased by 6,1 per cent since July. It demonstrates that the country's interest in crypto is growing.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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