Brazilian city will allow taxpayers to make crypto payments through third-party service providers
The world-famous host of annual carnivals – Brazilian city of Rio de Janeiro – has published a decree, allowing taxpayers to use crypto alongside fiat currency to pay tributes. Thus, Rio will become the first city in the country to accept digital assets as tax payments.
Taxpayers will be able to use more than one crypto asset for such payments. However, they cannot use any service of their liking. The third-party companies willing to provide the services must be registered with Rio de Janeiro and comply with the Brazilian Securities and Exchange Commission (SEC) requirements. Additional types of taxes will be enabled in the future, the city stated.
As for the payment mechanism, the hired companies will provide cryptocurrency payment services by converting crypto into fiat currency. Although funds will be received by the city authorities in local fiat currency, no additional cost to taxpayers is applicable.