Brazil: Congress Reviews Tax Increase on Betting

Committee Analyzes Provisional Measure 1.303/2025

Brazil.- July 17, 2025 www.zonadeazar.com Brazil’s National Congress has set up a joint committee to analyze PM 1.303/2025, which proposes higher taxes on online betting, crypto assets, and financial applications to offset the revoked IOF increase.

Public Hearings in August

Senator Renan Calheiros (MDB-AL) will chair the committee, with Carlos Zarattini (PT-SP) as rapporteur. Four public hearings will be held in August, starting on the 7th with the Ministry of Finance.

Discussions will cover taxing previously exempt assets, raising the CSLL, changes to betting rules, and impacts on fishermen’s insurance, with a vote expected by August 26.

Key Points of the Measure

PM 1.303/2025, issued in June, aims to:
✅ Standardize income tax at 17.5% for investments and crypto
✅ Apply 5% tax on previously exempt yields (LCI, LCA, CRI, CRA, debentures)
✅ Increase CSLL for financial institutions
✅ Raise online betting tax from 12% to 18% on gross revenue

The government states this will promote tax justice and spending efficiency.

Betting Sector Raises Concerns

The betting industry warns the tax hike could harm the regulated market, benefiting illegal operators who already handle R$ 6.5–7 billion monthly, surpassing the legal sector.

🔗 Editó: @_fonta www.zonadeazar.com