On Tuesday, October 11, the mayor of Rio de Janeiro, Eduardo Paes (PSD-RJ), signed a decree allowing the Property Tax (IPTU) of 2023 to be paid using cryptocurrencies.
The decree authorizes companies specializing in cryptocurrency transactions to register with the city government to offer their customers the possibility of paying tax in cryptocurrencies.
With the initiative, Rio will become the 1st Brazilian city to accept the tax payment in crypto-active.
“The initiative puts the city in a vanguard position by stimulating the circulation of these currencies in the economy and offering the carioca taxpayer another way to pay the tax,” says the document.
According to Paes, Rio is “a global city” that is “keeping up with the technological and economic advances in the universe of digital financial assets.”
“We have a look toward the future and want to contribute to becoming the innovation and technology capital of the country. And we are already ahead. We are the 1st city in Brazil to offer this type of payment to the taxpayer,” said the Rio de Janeiro mayor.
According to the decree, the city government will hire companies that convert cryptocurrency collections into Brazilian reals.
According to the city administration, Rio will receive 100% of the amount in reais at no additional cost to the public coffers.
In addition to registering with the municipality, companies wishing to participate in the initiative must follow other obligations.
It is necessary to have a “CNPJ” (National Register of Legal Entities) to keep their client records updated, like the Central Bank’s determinations for financial institutions, and to have a service contract with one of the City Hall’s collection banks.
The list of the companies accredited by the capital will be made available on the Municipal Department of Finance and Planning website.
With information from Poder360