2025-11-17 | IN RFB 2.291Added · Updated
Cryptoasset service providers must submit the DeCripto via e-CAC, digitally signed, for operations exceeding R$ 35,000 monthly or specific types like mining, borrowing, and transfers. Monthly reports are due by the last business day of the following month, while annual balances and aggregated CARF data are due by the last business day of January. Providers must collect valid self-declarations from users to determine tax residence, updating them upon changes or within twelve months for pre-existing users.
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Published in the Official Gazette of the Union on 11/17/2025, section 1, page 53. Provides for the provision of information regarding operations performed with cryptoassets to the Special Secretariat of the Federal Revenue of Brazil.
The SPECIAL SECRETARY OF THE FEDERAL REVENUE OF BRAZIL, in the exercise of the authority conferred by Art. 350, caput, item III, of the Internal Regulations of the Special Secretariat of the Federal Revenue of Brazil, approved by ME Ordinance No. 284, of July 27, 2020, and considering the provisions of Art. 113 of Law No. 5,172, of October 25, 1966, Art. 16 of Law No. 9,779, of January 19, 1999, Art. 57 of Provisional Measure No. 2,158-35, of August 24, 2001, Art. 5 of Law No. 14,478, of December 21, 2022, Art. 44 of Law No. 14,754, of December 12, 2023, Decree No. 8,842, of August 29, 2016, and the Multilateral Agreement of Competent Authorities for the automatic exchange of information under the Crypto-Asset Reporting Framework - CARF, of November 21, 2024, resolves:
CHAPTER I
PRELIMINARY PROVISIONS
Art. 1. This Ordinary Instruction provides for the obligation to provide information regarding operations performed with cryptoassets to the Special Secretariat of the Federal Revenue of Brazil.
Sole Paragraph. The information referred to in the caput shall be provided through the presentation of the Cryptoasset Declaration - DeCripto.
Art. 2. For the purposes of this Ordinary Instruction, the definitions described in Annex I and the due diligence procedures set forth in Annex II for the Cryptoasset Service Provider must be observed, in accordance with "anti-money laundering" and "know your customer" (Anti-Money Laundering/Know Your Customer - AML/KYC) principles.
Art. 3. The DeCripto must be submitted in the National Collection system, available at the Virtual Service Center - e-CAC on the website of the Special Secretariat of the Federal Revenue of Brazil on the internet, at the electronic address https://gov.br/receitafederal, in a layout defined by an Executive Declaratory Act issued by the General Coordination of Programming and Studies - Copes, to be published within a period of up to forty-five days, counted from the date of publication of this Ordinary Instruction.
Art. 4. The DeCripto sent in the manner provided for in Art. 3 must be digitally signed using a valid digital certificate, issued by an entity accredited by the Brazilian Public Key Infrastructure - ICP-Brasil, whenever the e-CAC requires a signature.
CHAPTER II
OBLIGATION TO SUBMIT THE DECRYPTO
Section I
Of the obligated persons
Art. 5. The following are obligated to submit the DeCripto:
I - the cryptoasset service provider that:
a) is a tax resident in Brazil; b) is constituted or organized according to Brazilian laws and has:
1. legal personality in Brazil; or
2. the obligation to submit to the Special Secretariat of the Federal Revenue of Brazil declarations with tax information regarding income;
c) is managed in Brazil; d) has a regular place of business in Brazil; or e) provides cryptoasset services in Brazil.
II - the natural person or entity resident or domiciled in Brazil in the case of operations:
a) carried out through a cryptoasset service provider resident abroad; b) carried out through a decentralized platform; or c) not carried out through a cryptoasset service provider.
§ 1. For the purposes of the provision in item "e" of item I of the caput, the provision of cryptoasset services in Brazil is considered to occur when the provider:
I - uses any ".br" domain to carry out its activities or operations; II - has entered into a commercial agreement with an entity resident or domiciled in Brazil or a subsidiary or related party that allows it to receive funds locally from Brazilian residents for the provision of cryptoasset services; III - evidences the targeting of services to residents in Brazil with the indication:
a) of an entity resident or domiciled in Brazil to mediate withdrawals or fund withdrawals; or b) of other payment methods, such as the PIX payment arrangement; or IV - carries out advertising of cryptoasset services clearly directed at residents in Brazil.
§ 2. The cryptoasset service provider is obligated to submit the DeCripto regarding operations with cryptoassets carried out through a branch headquartered in Brazil.
§ 3. In the case provided for in item II of the caput, the information must be provided whenever the monthly value of the operations, isolated or jointly, is greater than R$ 35,000.00 (thirty-five thousand reais).
Section II
Of the operations
Art. 6. The following information regarding operations with cryptoassets must be provided in the DeCripto:
I - purchase and sale;
II - exchange between declarable cryptoassets; III - transfer of declarable cryptoasset to a user account or wallet, not originating from the operations described in items I and II, in the following cases:
a) airdrop; b) staking income; c) mining income; d) borrowing of declarable cryptoasset; e) transfer between cryptoasset service providers; f) alienation of goods or services; g) return of guarantees; h) others; and i) unknown; IV - transfer of declarable cryptoasset from a user account or wallet, not originating from the operations described in items I and II, in the following cases:
a) transfer to a cryptoasset service provider; b) loan repayment; c) acquisition of goods or services, except that described in item V; d) deposit of guarantees; e) others; and f) unknown; V - acquisition of goods or services in a value greater than the equivalent in reais to U$ 50,000.00 (fifty thousand United States dollars); VI - transfer of declarable cryptoasset from a user account or wallet to a wallet not linked to a cryptoasset service provider; VII - involuntary loss of declarable cryptoasset; VIII - primary distribution of declarable cryptoasset referenced in an asset; and IX - redemption of the underlying asset of the declarable cryptoasset referenced in an asset.
CHAPTER III
INFORMATION TO BE PROVIDED
Section I
By the cryptoasset service provider
Art. 7. The cryptoasset service provider referred to in Art. 5, caput, item I, must provide:
I - for all operations carried out, individually, the following information:
a) date of the operation; b) type of operation, as provided for in Art. 6; c) identification of the users of the operation, according to the due diligence procedures described in Annex II; d) declarable cryptoassets used in the operation; e) quantity of declarable cryptoasset used in the operation, in units; f) value of each declarable cryptoasset used in the operation, in reais, excluding service fees charged for the execution of the operation; g) value of service fees charged for the execution of the operation, in reais, if applicable; and h) description of the referenced asset, regarding the operation provided for in Art. 6, caput, item VIII, when applicable; and
II - for each user of its services, the following information as of December 31 of each year:
a) balance of fiat currencies, in reais; b) balance of each type of declarable cryptoasset, in units; and c) cost of acquisition of each type of declarable cryptoasset, in reais, if it has been declared by the user of its services.
Art. 8. For the purposes of compliance with CARF, the cryptoasset service provider referred to in Art. 5, caput, item I, must provide, regarding the operations provided for in Art. 6, caput, items I to VI, the following information in an aggregated and annual manner:
I - identification of the reportable persons of the operation, according to the due diligence procedures described in Annex II; II - declarable cryptoasset used in the operation; III - type of operation; IV - quantity of transactions by type of operation; V - total value of declarable cryptoasset by type of operation, in reais; and VI - total quantity of declarable cryptoasset by type of operation.
§ 1. The cryptoasset service provider classified under Art. 5, caput, item I is exempt from the obligation provided for in the caput:
I - items "b", "c" or "d", if it has fulfilled the obligation in a Partner Jurisdiction in which it is a tax resident; II - items "c" or "d", if it has fulfilled the obligation in a Partner Jurisdiction due to the link described in Art. 5, caput, item I, item "b", corresponding to said jurisdiction; III - item "d", if it has fulfilled the obligation in a Partner Jurisdiction due to the link described in Art. 5, caput, item I, item "c", corresponding to said jurisdiction; IV - items "a", "b", "c" or "d", if it has fulfilled the obligation in a Partner Jurisdiction with substantially similar regulation to that established in this Ordinary Instruction, provided that it notifies the fulfillment to the Special Secretariat of the Federal Revenue of Brazil; and V - item "d", in the case of a natural person who has fulfilled the obligation in a Partner Jurisdiction in which it is a tax resident.
§ 2. The Cryptoasset Service Provider will be exempt from the obligation provided for in the caput regarding operations with declarable cryptoassets carried out through a branch that has fulfilled it in a Partner Jurisdiction.
Section II
By the cryptoasset user
Art. 9. The natural person or entity resident or domiciled in Brazil referred to in Art. 5, caput, item II, must provide the following information:
I - date of the operation;
II - type of operation, as provided for in Art. 6, caput, items I to VII; III - user of the operation, containing:
a) name of the natural person or entity; b) address; c) tax domicile; d) registration number in the Individual Taxpayer Registry - CPF or in the National Registry of Legal Entities - CNPJ, as applicable; and e) Foreign Tax Identification Number - NIF, if adopted by the country of tax residence, in the case of residents or domiciled abroad; IV - declarable cryptoassets used in the operation; V - quantity of declarable cryptoasset used in the operation, in units, up to the tenth decimal place; VI - value of each declarable cryptoasset used in the operation, in reais, excluding service fees charged for the execution of the operation; VII - value of service fees charged for the execution of the operation, in reais, if applicable; and VIII - identification of the cryptoasset service provider domiciled abroad or of the decentralized platform, when applicable.
Sole Paragraph. Alternatively to the identification of each declarable cryptoasset operation in a set of legal transactions executed indivisibly through a smart contract, the user may inform the unique identifier (transaction hash) of the atomic contractual composability registered in distributed ledger technology or similar technology.
CHAPTER IV
EVALUATION OF THE OPERATION WITH DECLARABLE CRYPTOASSET
Section I
Of the evaluation methods
Art. 10. The cryptoasset service provider and the cryptoasset user must declare the fair value of the declarable cryptoasset used in the operations provided for in Art. 6.
§ 1. In the case provided for in Art. 6, caput, item I, the fair value will be the amount in reais effectively paid at the time of the operation.
§ 2. In the cases provided for in Art. 6, caput, items II to IX, the cryptoasset service provider may determine the fair value based on the values of the trading pairs of declarable cryptoassets for fiat currencies that it maintains.
§ 3. If the cryptoasset service provider does not maintain the values of the pairs referred to in § 2, the evaluation methods indicated must be used, observing the following order:
I - book value that the cryptoasset service provider maintains regarding the declarable cryptoasset; II - value provided by companies or websites specialized in publishing quotes of declarable cryptoassets; III - most recent evaluation of the declarable cryptoasset; and IV - reasonable estimate of the value of the declarable cryptoasset.
§ 4. The cryptoasset user may use the methods described in items II to IV of § 3 to determine the fair value of the declarable cryptoasset used in the operations.
Section II
Of the conversion of foreign currency into national currency
Art. 11. For the purposes of this Ordinary Instruction, values expressed in foreign currency must be converted into United States dollars, unless already expressed in that currency, and subsequently converted into reais.
Sole Paragraph. The conversion referred to in the caput will be carried out by the closing quote of the United States dollar fixed, for sale, by the Central Bank of Brazil, extracted from the Ptax closing bulletin, for the date of the operation or balance.
CHAPTER V
DEADLINE FOR PROVIDING INFORMATION
Art. 12. The DeCripto must be transmitted to the Special Secretariat of the Federal Revenue of Brazil:
I - monthly, until the last business day of the calendar month subsequent to that in which the set of operations performed with declarable cryptoassets occurred, for the information provided for in Art. 7, caput, item I, and in Art. 9; and II - annually, until the last business day of the month of January of the subsequent calendar year, for the information provided for in Art. 7, caput, item II, and in Art. 8.
§ 1. The deadline for submitting the DeCripto will end at 23:59:59 (twenty-three hours, fifty-nine minutes and fifty-nine seconds), Brasília time, on the day fixed in the caput.
§ 2. The transmission of information does not exempt the declarant from the obligation to keep documents related to operations with declarable cryptoassets and to maintain the systems that store them.
CHAPTER VI
PENALTIES
Art. 13. The natural person or entity that fails to provide the information to which it is obligated, under Art. 5, or provides it outside the deadlines fixed in Art. 12, or omits information or provides inaccurate, incomplete or incorrect information, will be subject to the following fines, as applicable:
I - for late provision:
a) R$ 500.00 (five hundred reais) per month or fraction, if the declarant is an entity:
1. in the beginning of activity;
2. immune or exempt;
3. opting for the Special Unified Regime for Collection of Taxes and Contributions due by Microenterprises and Small Businesses - Simples Nacional, established by Complementary Law No. 123, of December 14, 2006; or
4. that, in the last declaration presented, calculated the Corporate Income Tax - IRPJ based on presumed profit;
b) R$ 1,500.00 (one thousand five hundred reais) per month or fraction, if the declarant is an entity not included in item "a"; or c) R$ 100.00 (one hundred reais) per month or fraction, if the declarant is a natural person;
II - for provision with inaccurate, incomplete or incorrect information or with omission of information:
a) 3% (three percent) of the value of the operation to which the omitted, inaccurate, incorrect or incomplete information refers, not less than R$ 100.00 (one hundred reais), if the declarant is an entity; or b) 1.5% (one and a half percent) of the value of the operation to which the omitted, inaccurate, incorrect or incomplete information refers, if the declarant is a natural person; and
III - for non-compliance with the summons of the Special Secretariat of the Federal Revenue of Brazil to fulfill an ancillary obligation or to provide explanations within the deadlines stipulated by the tax authority, the value of R$ 500.00 (five hundred reais) per calendar month.
§ 1. The fine provided for in item I of the caput will be reduced by half if the ancillary obligation is fulfilled before any ex officio procedure.
§ 2. The fine provided for in item "a" of item II of the caput will be reduced by 70% (seventy percent) if the declarant is an entity opting for Simples Nacional.
§ 3. The fine provided for in item "b" of item I of the caput will be applied if the entity classified under the hypotheses provided for in items 1 to 4 of item "a" of item I of the caput:
I - has used, in the last declaration, more than one method of profit calculation; or II - has carried out a corporate reorganization operation.
Art. 14. Without prejudice to the application of the fine provided for in Art. 13, caput, item II, a communication may be formalized to the Federal Public Ministry in case of indication of the occurrence of the crimes provided for in Art. 1 of Law No. 9,613, of March 3, 1998.
CHAPTER VII
CORRECTION OF INFORMATION
Art. 15. The natural person or entity that discovers errors, omissions or inaccuracies in the DeCripto already submitted to the Special Secretariat of the Federal Revenue of Brazil may submit a corrective declaration, observing the provisions of Arts. 2 and 3.
Sole Paragraph. No fine will be imposed regarding errors, omissions or inaccuracies contained in the original or corrective DeCripto, provided they are corrected or supplemented before the start of any ex officio procedure.
CHAPTER VIII
FINAL PROVISIONS
Art. 16. The taxation of operations with declarable cryptoassets described in this Ordinary Instruction follows the specific legislation, relative to the nature and characteristics of the operations.
Art. 17. The provision of information regarding the address of the declarable cryptoasset wallet for sending and receiving, if applicable, is mandatory only in the case of receipt of a summons carried out during a tax procedure.
Art. 18. The following Ordinary Instructions are revoked:
I - Ordinary Instruction RFB No. 1,888, of May 3, 2019; and II - Ordinary Instruction RFB No. 1,899, of July 10, 2019.
Art. 19. This Ordinary Instruction enters into force on the date of its publication in the Official Gazette of the Union and produces effects:
I - from January 1, 2026, regarding Art. 8; and II - from July 1, 2026, regarding Arts. 7, 9 and 18; and III - immediately, regarding the remaining provisions.
ROBINSON SAKIYAMA BARREIRINHAS
ANNEX
Definitions
Chapter I
Cryptoasset
The term "Cryptoasset" means the digital representation of a value or right that can be transferred and stored electronically through the use of cryptography and distributed ledger technology or similar technology.
The term "Declarable Cryptoasset" means any Cryptoasset that can be used for payment or investment purposes and that is not a Digital Currency issued by a Central Bank or a Specific Electronic Money Product.
The term "Asset-Referenced Declarable Cryptoasset" means a type of declarable cryptoasset that intends to maintain a stable value through reference to another value or right, or a combination thereof, including one or more official currencies.
The term "Non-Fungible Declarable Cryptoasset" means the non-interchangeable declarable cryptoasset with another declarable cryptoasset of the same species, quantity and quality, or whose referenced asset is also unique and non-fungible.
The following are also considered declarable cryptoassets:
a) the financial or non-financial asset issued in the form set forth in item 2; and b) the virtual asset as defined by Law No. 14,478, of December 21, 2022, and issued through distributed ledger technology or similar technology.
The term "Central Bank Digital Currency" means any digital fiat currency issued by a Central Bank.
A "Specific Electronic Money Product" is understood to be any Cryptoasset that is:
a) a digital representation of a singular fiat currency; b) issued upon receipt of funds for the purpose of carrying out payment operations; c) represented by a credit against the issuer denominated in the same fiat currency; d) accepted for payment by a natural or legal person who is not the issuer; and e) due to regulatory requirements to which the issuer is subject, redeemable at any time and at nominal value for the same fiat currency upon request of the product holder.
The term "Specific Electronic Money Product" does not include a product created to facilitate the transfer of funds from a client to another person according to the client's instructions. A product is not created with the sole purpose of facilitating the transfer of funds if, in the normal course of business of the Entity transferring, the funds related to such product are held for more than sixty days after receipt of the instructions to facilitate the transfer or, if no instructions are received, the funds related to this product are held for more than sixty days after receipt of the funds.
Chapter II
Cryptoasset User
The term "Cryptoasset User" means a natural person or entity that is a client of a Cryptoasset Service Provider or that carries out operations with cryptoasset without the intermediation of a Cryptoasset Service Provider.
A Natural Person or Entity, which is not a Financial Institution or Cryptoasset Service Provider, that acts as a Cryptoasset User for the benefit or on behalf of another Natural Person or Entity in the capacity of agent, custodian, nominee, signatory, investment advisor or intermediary, will not be considered as a Cryptoasset User, and such other Natural Person or Entity shall be considered as the Cryptoasset User.
A Cryptoasset Service Provider that provides a service to carry out operations for the acquisition of goods or services described in Art. 6, caput, items IV, item "c", and V, of this Ordinary Instruction, for or on behalf of a seller of goods or services, must treat the client, who is the counterparty of the seller for the said operation, as a Cryptoasset User regarding that operation, provided that the Cryptoasset Service Provider is obligated to verify the identity of the client as a result of the operation according to Brazilian anti-money laundering rules.
The term "Natural Person Cryptoasset User" means a Cryptoasset User that is a natural person.
The term "Preexisting Natural Person Cryptoasset User" means a Natural Person Cryptoasset User that established a relationship with the Cryptoasset Service Provider before the date of commencement of the validity of this Ordinary Instruction.
The term "Entity" means a legal person or legal arrangement, such as a corporation, partnership, trust or foundation.
The term "Entity Cryptoasset User" means a Cryptoasset User that is an Entity.
The term "Preexisting Entity Cryptoasset User" means an Entity Cryptoasset User that established a relationship with the Cryptoasset Service Provider before the date of commencement of the validity of this Ordinary Instruction.
Chapter III
Cryptoasset Service Provider
The term "Cryptoasset Service Provider" means any individual or entity that, acting in a business activity, provides cryptoasset operations services for or on behalf of clients, namely acting as a counterparty or as an intermediary of such operations, or making a trading platform available;
The term "Cryptoasset Service" means the provision of service classified under the following cases:
a) exchange between declarable cryptoasset and national or foreign sovereign currency; b) exchange between one or more declarable cryptoassets; c) transfer of declarable cryptoasset; d) custody or administration of declarable cryptoasset or instruments that enable control over
declarable cryptoasset; or e) participation in financial services and the provision of services related to the offer by an issuer or sale of a declarable cryptoasset.
The term "Decentralized Platform" means the Cryptoasset Service Provider that does not control or exercise significant influence over any of the following items:
a) the distributed ledger technology, on which operations with declarable cryptoassets are recorded; b) the smart contract mechanisms regarding the issuance, transfer, and extinction of a declarable cryptoasset; or c) the definition of remuneration rules and restrictions on deposits or withdrawals of declarable cryptoassets and parameters of the functioning of the decentralized platform.
The provision of cryptoasset services follows, insofar as applicable, the norms issued by the Central Bank of Brazil, relating to Law No. 14,478, of December 21, 2022, and by the Securities and Exchange Commission (CVM), relating to the cryptoasset that represents a security.
The term "Branch" means a unit, company, or office of a Cryptoasset Service Provider that is treated as a branch under the regulatory regime of a jurisdiction or that is otherwise regulated under the legislation of a jurisdiction, separately from other offices, units, or branches of the Cryptoasset Service Provider. All units, companies, or offices of a Cryptoasset Service Provider in a single jurisdiction are treated as a single branch.
Chapter IV Technical Terms
The term "Private Key" means a cryptographic element paired with a unique public key and associated with an algorithm necessary to encrypt or decrypt to perform operations on distributed ledger technology or similar technology;
The term "Wallet" means a means of storing, physically or electronically, the private keys of a user for a declarable cryptoasset held by or for the user;
The term "Custodial Wallet" means the wallet held by a custody service;
The term "Self-Custodial Wallet" means the wallet held by the User themselves;
The term "Smart Contract" means computer code with conditional offer(s), deployed on a distributed ledger technology or similar technology that executes a legal transaction or Atomic Contract Composability autonomously and deterministically, based on the acceptance and fulfillment, by a user, of the terms of the conditional offer of that code;
The term "Atomic Contract Composability" means a set of legal transactions with Declarable Cryptoasset(s), executed indivisibly through a smart contract and stored in a single record on the distributed ledger technology or similar technology.
The term "Airdrop" means the free distribution or for consideration of declarable cryptoassets to a wallet, carried out by issuers or blockchain projects with promotional, dissemination, or community-building objectives, which may occur (a) without any consideration from the recipient, (b) in exchange for performing specific tasks, or (c) as a reward to holders of other declarable cryptoassets, characterized by the absence of direct monetary payment for the declarable cryptoassets received.
The term "Staking" means a transfer of Declarable Cryptoasset from the User's Cryptoasset Wallet to a lock-up on a distributed ledger technology or similar technology to earn returns from direct or indirect participation in the validation of transactions.
The term "Involuntary Loss of Declarable Cryptoasset" means the misplacement, theft, loss of access to the private key of a digital wallet, sending of funds to an incorrect address, losses resulting from failures, obsolescence, or regulatory ban of declarable cryptoasset.
The term "Primary Distribution of Declarable Cryptoasset Referenced in Asset" means the first offer of Declarable Cryptoasset Referenced in Asset to a Cryptoasset User carried out through a Cryptoasset Service Provider.
ANNEX II DUE DILIGENCE PROCEDURES
Chapter I Reportable Jurisdiction and Reportable Person for CARF Purposes
"Reportable Jurisdiction" is understood as any jurisdiction (a) with which an agreement or convention is in force under which Brazil is obliged to provide the information contained in DeCripto, regarding Reportable Persons resident in that jurisdiction, and (b) that is identified as such on a list published at https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/legislacao/acordos-internacionais/acordos-para-intercambio-de-informacoes-relativas-a-tributos/convencao-multilateral-sobre-assistencia-mutua-administrativa-em-materia-tributaria/carf/lista-de-jurisdicoes-carf.pdf .
The term "Partner Jurisdiction" means any jurisdiction that has established equivalent legal requirements and is included in a list published at https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/legislacao/acordos-internacionais/acordos-para-intercambio-de-informacoes-relativas-a-tributos/convencao-multilateral-sobre-assistencia-mutua-administrativa-em-materia-tributaria/carf/lista-de-jurisdicoes-carf.pdf .
"Person of a Reportable Jurisdiction" is understood as an Entity or natural person resident in a Reportable Jurisdiction under the tax legislation of that jurisdiction, or an estate of a deceased person who was resident of that jurisdiction. For this purpose, an Entity, such as a corporation, a limited liability company, or a similar legal arrangement that does not have residence for tax purposes, must be treated as resident in the jurisdiction where its place of effective management is located.
"Reportable User" is understood as a Cryptoasset User who is a Reportable Person.
"Reportable Person" is understood as a Person resident in a Reportable Jurisdiction who is not:
a) an Entity whose shares are regularly traded on one or more established securities markets; b) any Entity that is a Related Entity of an Entity described in item "a"; c) a Governmental Entity; d) An International Organization; e) A Central Bank; f) a Financial Institution that is not an Investment Entity described in item 12, topic "b"
The term "Controlling Persons" means the natural persons who exercise control over an entity. In the case of a trust, the term means the settlor(s), the trustee(s), the protector(s), if any, the beneficiary(ies) or class(es) of beneficiaries and any other natural person who exercises final effective control over the trust and, in the case of a legal arrangement that is not a trust, such term means persons in equivalent or similar positions. The term "Controlling Persons" must be interpreted consistently with the recommendations of the Financial Action Task Force (FATF) of 2012, updated in June 2019, regarding the Virtual Asset Service Provider.
The term "Active Entity" means an Entity that satisfies one of the following criteria:
a) less than 50% (fifty percent) of the Entity's gross income in the previous calendar year or other appropriate reference period is passive income and less than 50% (fifty percent) of the assets held by the Entity during the previous calendar year or other appropriate reference period are assets that produce or are held for the production of passive income; b) all activities of the Entity consist substantially in holding, in whole or in part, the outstanding shares of one or more subsidiaries or providing financing and services to those subsidiaries that engage in businesses or activities other than those of a Financial Institution. However, the entity does not qualify for this status if the entity operates (or presents itself) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment instrument whose objective consists of acquiring or financing companies and, thus, holding participation in such companies as capital assets for investment purposes. c) The Entity has not yet exercised activity, nor has an operational history, but is investing capital in assets with the intention of exploring an activity other than that of a Financial Institution, provided that this exception will cease to apply twenty-four months after the date of its initial incorporation; d) the Entity has not been a Financial Institution in the last five years and is in the process of liquidating its assets or is reorganizing with the intention of continuing or restarting an activity other than that of a Financial Institution; e) the Entity mainly performs financing and hedging operations exclusively with or for Related Entities that are not Financial Institutions, provided that the group of such Related Entities mainly exercises activity other than that of a Financial Institution; f) the Entity satisfies, cumulatively, the following requirements:
f.1) it is incorporated and operates in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, sports, or educational purposes; or it is incorporated and operates in its jurisdiction of residence as a professional organization, commercial association, chamber of commerce, labor organization, agricultural or horticultural organization, civic league, or an organization that exercises activity exclusively for the promotion of social welfare; f.2) it is exempt from income tax in its jurisdiction of residence; f.3) it has no shareholders or members who have equity participation or economic benefit in its income or assets; f.4) the applicable legislation of the Entity's jurisdiction of residence or the Entity's constitutive documents do not allow any income or assets of the Entity to be distributed or applied for the benefit of a natural person or a non-charitable Entity, except in the conduct of its charitable activities, or as payment of reasonable remuneration for services rendered, or as payment of fair market value for property it acquires; and f.5) the applicable legislation of the Entity's jurisdiction of residence or the Entity's constitutive documents require that, upon its liquidation or dissolution, all its assets be distributed to a Governmental Entity or other non-profit organization, or reverted to the government of its jurisdiction of residence or to any political subdivision of that jurisdiction.
An Entity is a "Related Entity" of another Entity if one controls the other or if both are under common control. For this purpose, control includes direct or indirect ownership of more than 50% of the votes and value of an Entity.
The term "Financial Institution" means Custody Institution, Deposit Institution, Investment Entity, or Specific Insurance Company.
The term "Custody Institution" means an Entity that holds Financial Assets for the account of third parties as a substantial part of its activities. An Entity is considered to hold Financial Assets for the account of third parties as a substantial part of its activities when its gross revenue attributable to the custody of Financial Assets and related financial services is equal to or greater than 20% (twenty percent) of the Entity's total gross revenue during the shorter of the following periods: (a) the three-year period ending on December 31 (or on the last day of a fiscal year that does not correspond to the calendar year) of the year prior to the year in which this determination is made or (b) the time of existence of the Entity.
"Deposit Institution" is understood as any Entity that:
a) accepts deposits in the normal course of a banking or similar activity; or b) holds Specific Electronic Money Products or Central Bank Digital Currencies for the benefit of Clients.
The term "Investment Entity" means any Entity:
a) that carries out as its main activity one or more of the following activities or operations on behalf of or in the name of its client:
a.1) trading in financial market securities (checks, notes, deposit certificates, derivatives, etc.), foreign exchange, bills of exchange, interest rates and indices, securities, or trading in commodity futures; a.2) individual or collective investment portfolio management; or a.3) any other form of investment, administration, or management of Financial Assets, cash, or Declarable Cryptoassets on behalf of third parties; or b) whose gross revenue is attributable mainly to investing, reinvesting, or trading Financial Assets or Declarable Cryptoassets, provided that the Entity is administered by another Entity that is a Deposit Institution, a Custody Institution, a Specific Insurance Company, or an Investment Entity described in item 12, topic "a".
It is considered that an Entity carries out as its main activity one or more of the activities described in item 12, topic "a", or that its gross revenue is attributable mainly to investing, reinvesting, or trading Financial Assets or Declarable Cryptoassets for the purposes of item 12, topic "b", if the Entity's gross revenue from these activities is equal to or greater than 50% (fifty percent) of the Entity's total gross revenue during the shorter of the following periods: (a) the three-year period ending on December 31 of the year immediately preceding the one in which this determination is made or (b) the time of existence of the Entity.
For the purposes of item 12, topic "a", subtopic "a.3", the term "any other form of investment, administration, or management of Financial Assets, cash, or Declarable Cryptoassets on behalf of third parties" does not include the provision of services intended to effectuate operations described in items I and II of the caput of art. 6 of this Ordinary Instruction by or on behalf of clients.
The term "Investment Entity" does not cover an Entity that is an Active Entity by satisfying any of the criteria set forth in item 7, topics "b" to "e".
Items 12 to 15 must be interpreted in a manner consistent with similar language established in the definition of "financial institution" in the FATF Recommendations.
The term "Specific Insurance Company" means any Entity that is an insurance company (or holding of an insurance company) that issues a Monetary Value Insurance Contract or Annuity Contract, or is obliged to make payments related to them.
The term "Governmental Entity" means the government of a jurisdiction, any political subdivision of a jurisdiction (includes a state, province, county, or municipality) or any agency or organism that belongs entirely to a jurisdiction or to any one or more of the political subdivisions of a jurisdiction. This category is composed of the constituent parts, controlled entities, and political subdivisions of a jurisdiction:
a) a "constituent part" of a jurisdiction means any person, organization, agency, office, fund, organism, or other body, regardless of its designation, that constitutes a governing authority of a jurisdiction. The net revenue of the governing authority must be credited to its own account or other accounts of the jurisdiction, with none being reverted for the benefit of any private person. A constituent part does not include any natural person who is sovereign, official, or administrator acting in a private or personal capacity; b) a "controlled entity" means an Entity that is separate from the jurisdiction in its form or that constitutes a separate legal entity, provided that:
b.1) the Entity is wholly owned and controlled by one or more Governmental Entities, directly or through one or more controlled entities; b.2) the net revenue of the Entity is credited to its own account or accounts of one or more Governmental Entities, with no portion of its income being reverted for the benefit of any private person; and b.3) the assets of the Entity are destined for one or more Governmental Entities in the event of dissolution; c) income is not reverted for the benefit of private persons if such persons are beneficiaries of a government program, and the activities of the program are performed for the general public and related to the common welfare or with the administration of some government initiative. Notwithstanding the above, income is considered as reverted for the benefit of private persons if it is derived from the use of a Governmental Entity to carry out a commercial operation, such as the activities of a commercial bank that offers financial services to private persons.
The term "International Organization" means any international organization or agency or organism wholly owned by it. This category includes any intergovernmental organization, including a supranational organization, (a) that is composed mainly of governments, (b) that has a headquarters or a substantially similar agreement in force with the jurisdiction and (c) whose income does not revert for the benefit of individuals.
The term "Central Bank" means an institution (a) that is, by law or government sanction, the principal authority, (b) that is not the government of the jurisdiction itself and (c) that issues instruments intended to circulate as currency. Such an institution may include an organism that is separate from the government of the jurisdiction, regardless of whether it is wholly or partially owned by the jurisdiction.
The term "Fiat Currency" means the official currency of a jurisdiction, issued by that jurisdiction or by the Central Bank or monetary authority designated by that jurisdiction, represented by physical banknotes or coins or by currency in different digital forms, including bank reserves and Central Bank Digital Currencies. The term also includes commercial bank currency and electronic money products, including Specific Electronic Money Products.
The term "Financial Asset" includes securities (for example, (a) a share of a corporation, equity participation or effective ownership in a partnership or trust widely held or publicly traded and (b) note, bond, debenture or other evidence of indebtedness, equity participation, commodity, swap (for example, interest rate swaps, currency swaps, basis swaps, interest rate caps and floors, commodity swaps, equity swaps, equity index swaps and similar agreements), Insurance Contract or Annuity Contract, or any right, including a contract or option for futures or forwards, in securities, Declarable Cryptoasset, equity participation, commodity, swap, Insurance Contract or Annuity Contract. The term "Financial Asset" does not include direct rights over real estate not representing debt.
The term "Equity Participation" means, in the case of a company that is a Financial Institution, a participation in the capital or profits of the company. In the case of a trust that is a Financial Institution, an "Equity Participation" is considered held by any person treated as a settlor or beneficiary of all or part of the trust, or by any other natural person who exercises final effective control over the trust. A Reportable Person will be treated as a beneficiary of a trust if they have the right to receive, directly or indirectly (for example, through an attorney), a mandatory distribution or if they can receive, directly or indirectly, a discretionary distribution from the trust.
The term "Insurance Contract" means a contract, except Annuity Contract, in which the issuer agrees to pay an amount in the event of a specific contingency involving mortality, unhealthiness, accident, liability, or property risk.
The term "Annuity Contract" means a contract in which the issuer agrees to make payments for a determined period, in part or in whole, based on the life expectancy of one or more individuals. The term also encompasses a contract classified as an Annuity Contract in accordance with the legislation, rules, or practice of the jurisdiction where the contract was issued or signed, under which the issuer agrees to make payments for some years.
The term "Monetary Value Insurance Contract" means an Insurance Contract, except a reinsurance indemnity contract between two insurance companies, that has Monetary Value.
The term "Monetary Value" means the highest among the following options: (a) the amount to which the policyholder is entitled to receive in the event of withdrawal or termination of the contract, determined without reduction of any surrender charge or loan policy, or (b) the amount of funds that the policyholder can borrow, according to or with reference to the contract. Notwithstanding, the term "Monetary Value" does not include the amount to be paid under an insurance contract:
a) solely by reason of the death of an individual insured by a life insurance contract; b) for benefit due to personal accident or illness or other benefit that provides indemnification for economic loss due to the occurrence of an insured event; c) as reimbursement of insurance premium paid previously, except insurance costs, whether effectively mandatory or not, under an Insurance Contract (other than life insurance associated with an investment or annuity contract) due to cancellation or rescission of the contract, reduction of exposure to risk during the effective period of the contract, or resulting from the correction of a registration error or similar regarding the contract premium; d) as a dividend of the policyholder, except surrender dividend, provided that the dividend is related to an Insurance Contract, under which the only payable benefits are described in item 27, topic "b"; or e) as the return of a prepaid premium or deposited premium for an Insurance Contract for which the premium is payable at least annually, provided that the amount of the prepaid premium or deposited premium does not exceed the next annual premium that will be paid according to the contract.
Chapter II IDENTIFICATION OF A REPORTABLE PERSON FOR CARF PURPOSES
Natural Person Cryptoasset User Reportable
The following procedures apply to determine if the Natural Person Cryptoasset User is a Reportable Natural Person Cryptoasset User for CARF purposes:
Cryptoasset Service Provider, including any documentation obtained in accordance with AML/KYC procedures.
The self-declaration referred to in item 28 must be obtained when establishing the relationship with new Individual Cryptoasset Users or within twelve months after the effective date of these rules for Pre-existing Individual Cryptoasset Users.
If, at any time, there is a change in circumstances regarding an Individual Cryptoasset User that causes the Cryptoasset Service Provider to know, or have reason to know, that the original self-declaration of that Individual Cryptoasset User is incorrect or unreliable, the Cryptoasset Service Provider may not rely on the original self-declaration and must obtain a valid self-declaration, or a reasonable explanation and, if applicable, supporting documentation of the validity of the original self-declaration.
Reportable Cryptoasset Entity User and Controlling Natural Person
The following procedures apply to identify the Cryptoasset Entity User and the Controlling Natural Person of a Cryptoasset Entity User that is not an Active Entity nor an Entity related in item 5, topics "a" to "f", for the purposes of the Common Reporting Standard (CRF):
The Cryptoasset Service Provider must obtain a self-declaration from the Cryptoasset Entity User that allows it to determine the tax residence(s) of such cryptoasset entity user(s) and confirm the reasonableness of such self-declaration, based on information obtained by the Cryptoasset Service Provider, including any documentation obtained in accordance with AML/KYC procedures.
The self-declaration referred to in item 31 must be obtained when establishing the relationship with new Cryptoasset Entity Users or within twelve months after the effective date of these rules for Pre-existing Cryptoasset Entity Users.
If the Cryptoasset Entity User has no tax residence, the Cryptoasset Service Provider may rely on the location of principal activity or the address of the head office to determine the residence of the Cryptoasset Entity User.
For the purpose of determining the Controlling Natural Person(s) of the Cryptoasset Entity User, a Cryptoasset Service Provider may rely on information collected and maintained in accordance with AML/KYC procedures, provided that these procedures are consistent with the 2012 Recommendations of the Financial Action Task Force - FATF, updated in June 2019, regarding Virtual Asset Service Providers. If the Cryptoasset Service Provider is not legally required to apply AML/KYC procedures consistent with the 2012 FATF Recommendations, updated in June 2019, regarding Virtual Asset Service Providers, it must apply substantially similar procedures for the purpose of determining the Controlling Natural Person.
For the purpose of determining whether a Controlling Natural Person is a Reportable Person for the purposes of the CRF, the Cryptoasset Service Provider must rely on a self-declaration from the Cryptoasset Entity User or the Controlling Natural Person that allows the Cryptoasset Service Provider to determine the tax residence(s) of the Person(s) exercising control and confirm the reasonableness of the self-declaration based on information obtained by the Cryptoasset Service Provider, including any documentation collected in accordance with AML/KYC procedures.
If, at any time, there is a change in circumstances regarding a Cryptoasset Entity User or its Controlling Natural Persons that causes the Cryptoasset Service Provider to know, or have reason to know, that the original self-declaration is incorrect or unreliable, the Cryptoasset Service Provider may not rely on the original self-declaration and must obtain a valid self-declaration, or a reasonable explanation and, if applicable, supporting documentation of the validity of the original self-declaration.
Chapter III Requirements for the Validity of Self-Declarations
A self-declaration provided by an Individual Cryptoasset User or by a Controlling Natural Person of a Cryptoasset Entity User is valid only if (a) it is signed or confirmed by the Individual Cryptoasset User or the Controlling Natural Person, (b) it is dated, at the latest, on the date of receipt, and (c) it contains the following information regarding the Individual Cryptoasset User or the Controlling Natural Person:
a) first and last name; b) residential address; c) tax residence jurisdiction(s); d) Individual Taxpayer Registry number - CPF; e) Tax Identification Number - TIN, for non-resident taxpayers in Brazil; f) date of birth, for non-resident taxpayers in Brazil; and g) natural person representative of an estate, where applicable.
A self-declaration provided by a Cryptoasset Entity User is valid only if (a) it is signed or confirmed by the Cryptoasset Entity User, (b) it is dated, at the latest, on the date of receipt, and (c) it contains the following information regarding the Cryptoasset Entity User:
a) corporate name; b) address; c) tax residence jurisdiction(s); d) National Legal Entity Registry number - CNPJ; e) Tax Identification Number - TIN, for non-resident taxpayers in Brazil; f) those described in item 37, regarding each Controlling Natural Person in the case of a Cryptoasset Entity User that is not an Active Entity or an Entity related in item 5, topics "a" to "f", unless the Controlling Natural Person has provided a self-declaration in accordance with item 37, as well as the function(s) by virtue of which each Reportable Person is a Controlling Natural Person, if not determined based on AML/KYC (Anti-Money Laundering/Know Your Customer) procedures. g) information on the criteria met to be treated as an Active Entity or an Entity related in item 5, topics "a" to "f", where applicable.
Notwithstanding the requirements described in items 37 and 38, the TIN is not mandatory if the resident jurisdiction of the Reportable Person does not issue it.
Chapter IV General Provisions
A Cryptoasset Service Provider that is also a Financial Institution for the purposes of the Common Reporting Standard may rely on the due diligence procedures described in Federal Revenue Instruction No. 1,680, of December 28, 2016, for the purposes of due diligence procedures under this Annex. The Cryptoasset Service Provider may also rely on a self-declaration already collected for other tax purposes, provided that it meets the requirements set forth in items 37 to 39 of this Annex.
A Cryptoasset Service Provider may engage a third party to fulfill the due diligence obligations set forth in this Annex, but the obligations remain the responsibility, for all purposes, of the Cryptoasset Service Provider.
The Cryptoasset Service Provider must retain all documentation and data for a period of no less than five years after the end of the period in which the Cryptoasset Service Provider must provide the information covered by this Federal Revenue Instruction.
"AML/KYC Procedures" refers to the due diligence procedures regarding the clients of a Cryptoasset Service Provider, in compliance with the anti-money laundering or similar requirements to which that Cryptoasset Service Provider is subject.
The term "TIN" means Taxpayer Identification Number (or functional equivalent in the absence of a Taxpayer Identification Number).
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Source: Receita Federal do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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