Rio de Janeiro is seeking to establish a crypto company to become the first Brazilian city to allow taxpayers to use digital assets or fiat currencies to pay taxes in 2023.
Besides allowing taxpayers to make payments through various digital assets, they will also be subject to other types of taxes in the future.
Explained, the company should create a cryptocurrency payment service that can convert it into fiat currency immediately after customers make a payment using the digital asset.
Therefore, companies that intend to create such services must be prepared to comply with the regulations of the Brazilian Securities and Exchange Commission (SEC) and register with the French city.
Meanwhile, taxpayers will not incur additional costs when funds are transferred to the city in local fiat currency, commented Mayor Eduardo Paes.
In context, Rio is a global city that deepens technological advances and digital financial assets to develop national innovation.
It is understood that Brazil has established many companies that hold cryptocurrencies, as evidenced by data from the local tax authority Receita Federal do Brazil showing that 12,053 companies have declared cryptocurrencies on their balance sheets.
On different sources, the US state of Colorado has also started accepting crypto as payment of taxes or debts while the legislatures of Arizona, Wyoming and Utah have introduced bills to accept tax payments in the form of digital currency.
