Thursday, January 27

City in Rio de Janeiro approves law for differentiated tax on cryptocurrencies

A city in Rio de Janeiro, in the metropolitan region of the state, approved a law for the differentiated collection of taxes on cryptocurrencies last Thursday (30).

The city in question is Maricá, which has already become a world reference on the topic of social digital currency in 2020. With the social currency Mumbuca, the municipality already pays a universal basic income for people living in the city, a method of payment accepted throughout the trade.

A retiree from the INSS even shared her story with the Livecoins, claiming to use this Mumbuca to buy rice and beans, in other words, guaranteeing their basic food. This is possible due to the fact that Maricá receives a lot of money from the pre-salt exploration, making it possible to give a part to the local population.

The municipality, which is a global reference, hopes to become even more attractive in 2022.

City of Rio passes law for lower taxes on green cryptocurrencies

The municipality of Maricá advanced its legislation last Thursday, when it saw the City Council approve Complementary Law No. 357.

According to information released by the local government, this legislation “establishes the creation of a differentiated system of local taxation for environmental protection initiatives, such as the so-called “green currencies” (sustainable cryptocurrencies), green funds and other projects, reducing the amounts of taxes paid by companies that provide these services“.

In Brazil, some cryptocurrency projects are already operating in the sector linked to the environment, and they may find in Maricá a more interesting environment in which to conduct their business, as the project reduces the amount of taxes paid.

The project had been presented by Mayor Fabiano Horta, who highlighted the possibility of having more investments in Maricá with this approval.

“I appreciate the support of the City Council in approving this project. It demonstrates the partnership between the powers for a common good, a union that provides the necessary security for investors to come to our municipality, bringing new investments.”

Which cryptocurrency projects will be impacted?

The initiative of this law involves the initiative Desenvolvimento Maricá, which seeks to provide economic and tax incentives for companies to arrive in the city.

With this law approved, the taxation model aims to encourage green cryptocurrency organizations to settle in the city and help transform Maricá into a more sustainable municipality. The idea is to offer positive impacts to the local environment.

Thus, the tax rate will be 2% for activities carried out that fit this profile, whether from digital operating platforms, including environmental assets, fintechs, startups, as well as administrations and fund managers that fit this profile.

This taxation will only be done during the liquidation phase of green bonds. Anyway, Olavo Neto, president of the Maricá Development Company (Codemar), highlighted that the place will become a national example with the new law.

“The creation of the green ecosystem is the agenda of the time in the world. Brazil has the capacity to become the main country in discussions on green bonds and Maricá now takes the lead, establishing tax incentive rates for this new chain. This demonstrates the municipality’s willingness to become a pioneer city in green investments”.

No understanding from the municipality of Maricá and the new law passed, green coins are cryptocurrencies or sustainable financial resources that reduce the global carbon footprint. In addition, they reduce harmful environmental processes or even encourage processes to value the environment.

It is worth remembering that this law only affects green cryptocurrency businesses and is municipal in scope, having no relation to Normative Instruction No. 1,888 of the Federal Revenue Service.

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