Zona de Azar Brazil – Brazil: Congress Overturns Vetoes to the Law on Counterpart Betting and Online Games

Brazil.- May 10, 2024 www.zonadeazar.com Senators and representatives rejected the veto (VET 49/2023) in the first, second and third paragraphs of article 31 of Bill 3626/23.

These articles established that the calculation of the tax on income from the earnings of bettors would be based on the annual grand prize of the bets, leaving behind the losses incurred in bets of the same type.

Chamber of Deputies

With the rejection of the vetoes, Law 14.790/2023 comes into force with the following wording:

Sections 1, 2 and 3 of article 31 of the Law Project.

“§ 1 For the purposes of this article, the positive balance obtained in counterpart bets throughout the year is considered a net prize, discounting losses on similar bets”.

“§ 2 The tax mentioned at the beginning of this article will apply to the first grandchildren that exceed the amount of the first category of the annual progressive IRPF budget.”

“§ 3 The tax referred to at the beginning of this article will be calculated annually and the payment must be made until the last day of the month following the calculation.”

Once the vetoes are revoked, the Servicio Federal de Ingresos de Brasil will issue a new Normative Instruction to standardize the Tax on the Income of Bettors.

The Congress annuls the veto of the bill

See an example of how the Income Tax would be charged:

Let’s imagine a bettor who, summing up all his gains and losses during a year, and in all the betting houses where he has accounts, obtains a net gain of R$45,000.00.

Tax calculation basis: (Beneficio Neto – 1st Annual Exención Band IRRF) 45,000.00 – 27,110.40 = 17,889.60 (benefit that exceeds the exención band)

Therefore, the tax to be paid is 15% of 17,889.60

The tax on this bettor’s annual income is: 2,683.44.

Edit @_fonta   www.zonadeazar.com