Zona de Azar Brasil – Brazil: Income Tax Exemption for Betting Maintained

Brazil.- May 8, 2024 www.zonadeazar.com  On the morning of this Tuesday the 7th, the regulations that defined the taxation rules for personal income tax were published in the Official Gazette of the Union (DOU).

The Regulation established the exemption from income tax for lottery prizes and also for betting.

The minimum value was based on the limit of the 1st range of the IPFR monthly incidence table. Thus, the value of R$ 2,259.20 is defined, going against the veto of President Luiz Inácio Lula da Silva, who had vetoed a minimum amount to be exempt from IR.

• The Federal Revenue maintains the Income Tax exemption for bets with winnings of up to R$ 2,259.20

“ IX – prize money obtained in lotteries, including the counterpart bets referred to in art. 31 of Law No. 14,790, of December 29, 2023, up to the limit of the value of the 1st (first) range of the monthly income tax incidence table; ”

Consult some important extracts from the Regulations published in the DOU.

“XXIII – monetary prizes obtained in lotteries, including instant ones, even for welfare purposes, even if they are operated directly by the State; and

XXIV – net prizes obtained from bets in the fixed quota lottery referred to in art. 31 of Law No. 14,790, of 2023.

Single paragraph. For the purposes of section XXIV:

I – the difference between the prize value and the bet amount, determined for each bet, after the completion of a real sports-themed event, or for each session of a virtual event, is considered a net online gaming prize;

II – losses suffered in other bets or sessions are not deductible;

III – the tax will be levied:

a) the value of the prize that exceeds the value of the 1st (first) rank of the monthly income tax incidence table;

b) at the time of payment or credit of the prize; andc

) through exclusive taxation at source at the rate of 15% (fifteen percent); and

IV – the betting operating agent will be responsible for calculating and collecting the IRRF related to the operations carried out by him.”

Another change refers to Regulatory Instruction RFB 1,990/2020 in its article 2, which establishes the obligation to present the Income Declaration. Tax Withheld at Source (DIRF). They included:

“j) the counterpart betting operators referred to in Law No. 14,790, of December 29, 2023;

The doubt that remains is in relation to the veto, since it has not been clarified how it will remain after the publication of the Regulatory Instruction this Tuesday. The law established that the collection would be annual, but President Lula vetoed that period, as well as the previously stipulated amount.

Access the complete Regulatory Instruction:. just click here

Editó @_fonta   www.zonadeazar.com