> For the complete documentation index, see [llms.txt](https://www.opensourcelaw.com.br/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.opensourcelaw.com.br/en/legislation/11.-law-no.-7-713-1988.md).

# 11. Law No. 7,713/1988

This law provides for taxation by <mark style="background-color:purple;">Income Tax on income and capital gains</mark> received by individuals resident or domiciled in Brazil.

Therefore, Personal Income Tax will apply to gross income and will be <mark style="background-color:purple;">due monthly</mark>, as income and capital gains <mark style="background-color:purple;">derived from the disposal of cryptoassets</mark> are received, according to the rates of [Law No. 8,981/1995](/en/legislation/12.-law-no.-8-981-1995.md).

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Disposals are exempt from taxation <mark style="background-color:purple;">that do not exceed R$ 35,000.00 (thirty-five thousand reais) in the month</mark>, considering the entire set of gains obtained, even if in different cryptoassets, as set out in [Question No. 620](/en/regulation/3.-federal-revenue-service/3.4.-questao-no-620-perguntas-e-respostas-irpf-2023.md).
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Cryptoassets do not need to be declared <mark style="background-color:purple;">with an acquisition value of less than R$ 5,000.00 (five thousand reais)</mark>, as set out in [Question No. 457](/en/regulation/3.-federal-revenue-service/3.3.-questao-no-457-perguntas-e-respostas-irpf-2023.md).
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## Definitions:

* **Gross Income:** the sum of the gains earned in the month from the disposal of cryptoassets, without any deduction.
* **Capital Gain:** positive difference between the transfer value of the cryptoasset and its inflation-adjusted acquisition cost.

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Some authors argue that <mark style="background-color:purple;">the exchange of one cryptoasset for another does not constitute realization of income</mark>, given that economic availability should only actually be considered when the cryptoassets are converted into income, that is, into legal tender.
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