Rio de Janeiro, a city in Brazil, approves citizens who are crypto holders to use their coins to pay their property tax, effective from January 2023.
According to the reports, the city released in its official register that Rio will employ crypto exchange firms to help perform crypto conversions into native currencies. This move will allow its citizens to pay their Urban Building and Land Tax (IPTU), also called property tax using crypto assets.
What Is Property Tax In Brazil?
In the country, citizens pay for IPTU on real estate assets based on the property’s market worth. This payment is a means of generating revenue for the government, which is why all districts in the country charge their citizens the levy. All citizens are obliged to pay the levy and may choose to do so using monthly installments orpay everything at once annually.
The city’s authority said that its involvement with crypto exchanges might help the district receive the full worth of their crypto payment in their native currency, helping to minimize extra charges.
The idea was the handiwork of Eduardo Paes, a crypto expert in the municipality. Eduardo, earlier in 2022, stated that he is seeking techniques to let the city (Rio de Janeiro) include crypto in its finances.
Rio Is Pioneering The Use Of Crypto For Property Taxes Payments
As for the most recent advancement, Mayor Paes was cited as saying Rio de Janeiro is a world-class city and because of this, the district is trying to keep up with technological and financial advancements in the financial industry. He further stated that the city is looking forward to becoming the nation’s technological advancement and innovation center.
Eduardo also mentioned that the city (Rio) is far ahead of many other districts that wish to involve crypto in their tax payment schemes. Paes said Rio is the first city to achieve a breakthrough in the quest.
The approval document mentioned that the cryptocurrency exchanges working with the tax collection authority must abide by the Central Bank policies and comply with the regulations that bind the native financial institutions during the tax payment process.
Eduardo also mentioned in his statement earlier this year that they are planning on giving bonuses or incentives to residents who pick BTC (Bitcoin) as their means of IPTU payment.