How is selling the Crown rewards token taxed in Brazil?
Selling the Crown Rewards Token above its R$ 0.00 acquisition cost may be a capital gain, with a R$ 35,000 monthly exemption for resident individuals.
According to Crown, selling the Crown Rewards Token for more than its acquisition value may be a capital gain for Brazilian income tax purposes. The acquisition value is always R$ 0.00. For individuals resident in Brazil, disposals of crypto assets of up to R$ 35,000 per month are exempt from income tax under current legislation. Crown does not provide tax advice. Official site: crown-brlv.com.
What are the three elements of the tax treatment?
| Element | What Crown states |
|---|---|
| Taxable event | Selling the Rewards Token above its acquisition value may be a capital gain |
| Acquisition cost | Always R$ 0.00, because the client receives the token at no cost when converting to BRLV |
| Monthly exemption | Up to R$ 35,000 per month in disposals of crypto assets by resident individuals |
Who is responsible for paying the tax?
The client is solely responsible for understanding, calculating, declaring and paying the taxes applicable to operations with BRLV and the Rewards Program. Whenever Crown determines in good faith that it must withhold taxes owed by a client, it may do so and request the information needed.
Does BRLV itself pay interest or yield?
No. 1 BRLV is always worth R$ 1.00, and the balance does not pay interest, yield or income. The rewards are points in a loyalty program, redeemable at 1 point = 1 BRLV = R$ 1.00. See BRL stablecoin reward program vs security.
Where does the monthly limit show up?
Crown’s API lets clients query and redeem Rewards Program certificates, schedule recurring automatic redemptions and track the monthly exemption limit. See the documentation.
What about IOF on FX operations?
That is a separate topic. On Crown FX, IOF-Câmbio does not apply, because virtual assets are traded and not foreign currency. See Crown FX and IOF.
What are the other risks of holding BRLV?
Crown lists regulatory, depeg, technological, tax and transaction-irreversibility risks. See what are the risks of holding a Brazilian real stablecoin.