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Municipality of Rio de Janeiro reduces taxes for 'green' cryptocurrencies

Municipality of Rio de Janeiro reduces taxes for 'green' cryptocurrencies

The city of Maricá announced in a recent publication that the creation of a special tax regime for “green” cryptocurrencies has been approved.

Green cryptocurrencies are digital assets that lower the global carbon footprint. In addition, they aim to reduce harmful environmental processes or encourage processes to value the environment.

The initiative was approved by the Municipality of Maricá this Thursday (30) in the form of Complementary Law No. 357.

This regulation establishes the creation of a differentiated system of local taxation for environmental protection initiatives, such as the so-called “sustainable cryptocurrencies”, green funds and other projects.

In practice, the new legislation allows for a reduction in the amounts of taxes paid by companies that provide these services.

The bill was sent to the Chamber by the mayor of the city Fabiano Horta.

"The objective of the taxation model is to encourage organizations that own these products to settle in the city, injecting new technologies to make Maricá a reference in encouraging green projects, those whose purpose is to offer positive impacts to the environment", says the statement of the City Hall.

Tax rate will be 2%

Also according to the text, the tax rate will be 2% for activities carried out that fit this profile.

The list includes digital operating platforms, including environmental assets, fintechs, startups providing these services, as well as fund administration and management activities that fall within this area of expertise.

Thus, taxation will only be done during the liquidation phase of green bonds.

The initiative to reduce taxes for green cryptocurrencies is part of the Desenvolvimento Maricá project. It is a program that institutes various municipal policies for tax incentives and economic development.

As highlighted by the mayor of Maricá, Fabiano Horta, these investments position the city as a national reference, encouraging innovative projects:

“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.”

Maricá digital currency

The city of Maricá has been a pioneer in terms of initiatives aimed at virtual currencies. After all, still in 2013, the municipality launched a social digital currency called Mumbuca.

It was created by the City to circulate only locally and cannot be converted to reais. The program is aimed at people who live with a monthly family income of up to three minimum wages.

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