MP 1303 lapses and the flat 17.5% crypto tax falls: what applies to income tax now
The Chamber of Deputies pulled the provisional measure from the agenda by 251 votes to 193 and the text lapsed. As a result, taxation of crypto-asset gains follows the earlier rules, and the R$35,000 exemption on monthly sales remains.
Historical reference: October 9, 2025. Published on this site on November 2, 2026. Dates in the text identify the period covered.
In this article
Key points
- Provisional Measure 1,303/2025 lapsed on October 8, 2025, after the Chamber of Deputies approved, by 251 votes to 193, the request to pull it from the agenda.
- The MP, issued on June 11, provided for a flat 17.5% rate on income from virtual assets starting January 1, 2026. That text does not apply.
- The earlier rules continue: the exemption for gains on sales of up to R$35,000 per month, the progressive rates from 15% to 22.5% and the current ancillary obligations.
- The topic may return to Congress in a bill; until then, no new rule has been approved.
Brasília, October 9, 2025 — Provisional Measure 1,303/2025 ceased to have effect on the night of Wednesday, October 8. The Chamber of Deputies approved, by 251 votes to 193, an opposition motion to pull the text from the floor agenda. With no vote in the Chamber and the Senate by the end of the period, the MP lapsed. Along with it fell the proposal to charge 17.5% income tax on any gain from virtual assets.
- Date MP 1,303 was published
- 06/11/2025
- Flat rate the MP set for income from virtual assets
- 17.5%
- Votes to pull the MP from the Chamber's agenda on 10/8
- 251 to 193
- Monthly sales limit that remains exempt from capital gains tax
- R$35,000
What MP 1,303 was
The government issued the measure on June 11, 2025, in an extra edition of the Federal Official Gazette, as a revenue alternative to the IOF increase decreed in May (the back-and-forth over the decree is in IOF: the back-and-forth in Congress and the Supreme Court). It changed the taxation of financial investments, sports betting and virtual assets. The original forecast was to raise R$10.5 billion in 2025 and R$21 billion in 2026; after negotiations in Congress, the projection fell to R$17 billion, according to Agência Brasil.
For those who trade crypto assets, the central point was the unified rate. Under the text, individuals resident in Brazil and companies under the Simples Nacional regime or exempt would pay 17.5% on income from virtual asset transactions, including net gains, starting January 1, 2026. The tax would be calculated quarterly and treated as final. For companies under the actual, presumed or arbitrated profit regimes, the gains would enter the IRPJ and CSLL base.
| Point | MP 1,303 (lapsed) | Rule that applies |
|---|---|---|
| Rate | Flat 17.5%, on all gains from virtual assets | Progressive capital gains rates, from 15% to 22.5% |
| R$35,000 monthly exemption | Would end; any gain would be taxable | Kept for sales of up to R$35,000 in the month |
| Start | January 1, 2026 | Already in force |
| Loss offsetting | Only against gains on virtual assets, in the quarter and up to five prior quarters | No change from the MP |
| Companies under actual, presumed or arbitrated profit | Gains in the IRPJ and CSLL base, with no loss deduction | No change from the MP |
How the MP lapsed
A provisional measure is valid for 60 days, extendable for another 60, and must be approved by Congress within that period. MP 1,303 reached the limit on October 8 without having been voted on the floor of the Chamber, which considers it before the Senate. That day, the floor approved the opposition motion to pull it from the agenda, and the period ended at midnight.
- 06/11/2025MP 1,303 is published, taxing financial investments and virtual assets.
- Jun to Sep/2025The MP moves through Congress; crypto market groups criticize the end of the exemption, and the text is renegotiated.
- 10/08/2025The Chamber approves, 251 to 193, pulling it from the agenda. The MP lapses at midnight.
- To be determinedThe government and Congress may take up the topic through a bill; nothing had been approved as of this date.
What applies now for crypto holders
With the MP gone, nothing changes in the 2026 calendar. Capital gains on the sale of crypto assets follow the earlier rule: sales of up to R$35,000 in the month, adding up all the month's transactions, are exempt (art. 22 of Law 9,250/1995, which Brazil's Federal Revenue Service (Receita Federal) applies to crypto assets). Above that, the gain pays tax in brackets (art. 21 of Law 8,981/1995, as worded by Law 13,259/2016): 15% up to R$5 million of gain, 17.5% from R$5 million to R$10 million, 20% from R$10 million to R$30 million and 22.5% above that. Calculation remains monthly. The limits and the ancillary obligations, such as reporting to the Receita Federal, also remain the current ones.
The R$35,000 exemption applies to sales in the month, and the Receita requires tracking the acquisition cost of each asset. For calculation and filing, consult an accountant: this article is not tax advice.
Regulation of the sector also does not depend on the MP. The legal framework in Law 14,478/2022 remains the instrument that defines who may provide virtual asset services and what is still to be regulated (see what the legal framework already requires).
What to expect
According to Agência Brasil, the MP's fall removes R$35 billion from the revenue forecast for 2026. That keeps open the possibility of a new proposal, but with no defined text. For companies and investors, the practical guidance is to plan with the rules that apply today and follow Congress and the Receita Federal.
- Keep purchase and sale notes and the transaction history from each exchange and wallet, to prove the acquisition cost.
- Add up all of the month's sales before concluding they are below R$35,000.
- Do not adjust your late-2025 strategy based on a rate that no longer exists.
- Check with your accountant any filing and payment obligation for the month.
Frequently asked questions
Did MP 1303 end the R$35,000 crypto exemption?
No. The MP provided for ending the exemption, but it lapsed on October 8, 2025. The exemption for sales of up to R$35,000 in the month and the progressive capital gains rates remain in force.
What rate did MP 1303 set for crypto?
A flat 17.5% on income from virtual assets, including net gains, starting January 1, 2026, with quarterly calculation. Because the MP lapsed, that rule does not exist.
Why did MP 1303 lapse?
Because on October 8, 2025, the Chamber of Deputies approved, by 251 votes to 193, pulling the MP from the agenda, and the constitutional period ended without a vote.
Can crypto taxation change in 2026?
It can, but only if Congress approves a new law. As of October 9, 2025, no text had been approved. The topic may return in a bill, and the Receita Federal may issue operational rules.
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Sources
- Câmara aprova retirada da MP alternativa ao IOF; texto caduca · Agência Brasil, Oct 8, 2025
- Lei nº 13.259, de 16 de março de 2016 (alíquotas do ganho de capital) · Senado Federal, Mar 16, 2016
- Taxa única e fim da isenção de até R$ 35 mil por mês: veja como ficam os novos impostos sobre criptomoedas · Money Times, Jun 12, 2025
- Nova tributação de criptos afasta investidores, dizem especialistas · Poder360, Jun 13, 2025
- Medida Provisória nº 1.303, de 11 de junho de 2025 · Presidência da República, Jun 11, 2025
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