The city can allow taxpayers to create crypto payments through third-party service providers.
The city of Rio de Janeiro is seeking crypto firms to operate its tax property seasoning in 2023, according to a decree printed on October. 11, permitting taxpayers to use crypto alongside decree currency to pay tributes. The move makes Rio de Janeiro the first Brazilian town to simply accept digital assets as payment for taxes.
It is expected that taxpayers are able to pay with quite one crypto quality which different sorts of taxes are enabled within the future, town explicit . The decree additionally states that firms willing to produce the services should be registered with town and go with the Brazilian SEC necessities.
The employed firms can give cryptocurrency payment services and convert crypto into fiat currency. Funds are transferred to town in native decree currency with none extra value to taxpayers. politician Eduardo Paes same during a statement:
“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.”
Similar actions are taken around the world. In Sep, the US state of Colorado started accepting crypto as payment for any taxes owed. The legislatures of Arizona, Wyoming, and Utah have all introduced bills to accept tax payments within the form of digital currencies to variable degrees.
Rio Delaware Janeiro's initiative is another example of the efforts being created within the country to broaden adoption. Recently, the quantity of corporations holding cryptocurrency in Brazil has reached record highs as of August, because the native taxation authority, Receita Federal do Brazil, recorded 12,053 distinctive organizations declaring crypto on their balance sheets in August, up 6.1% over July.
( Ana Paula Pereira, Cointelegraph, 2022 )