Zona de Azar Brazil – Brazil: They Regulate the Collection of Social Contributions in Sports Betting

Brazil.- May 2, 2024 www.zonadeazar.com Federal Revenue regulates the collection of social contributions in sports betting and online games of chance.

The Federal Revenue Secretariat published this Tuesday (30) in the DOU Regulatory Instruction 2,188, which includes the need for information on the social contribution that taxes the lottery modality called fixed-odd bet in the Declaration of Debits and Credits for Federal Taxes (DCTF).

The calculation will be monthly, with rates of 0.5% (physical) and 0.25% (virtual) that will be applied to the net profit of the operators, under code 9197.

Regulatory Instruction RFB No. 2,188 was published in the Official Gazette of the Union this Tuesday (30) by the Special Secretariat of Federal Revenue of Brazil of the Ministry of Finance, which modifies Regulatory Instruction No. 2005/2021 to include a chapter referring to the lottery type fixed odds bet.

The standard includes the need for information regarding the social contribution that taxes the lottery modality called fixed-odds betting in the Declaration of Federal Tax Debts and Credits (DCTF).

The social contribution is one of the taxes to which all companies established in Brazil are subject and, in the case of sports betting and online games, rates of 0.5% were defined for bets made in physical media and 0.25% for those carried out in virtual format. environmental, which will be applied to the net profit of the operators.

The DCTF regulates the collection of social contributions and the objective of the Federal Treasury was to make clear the need to include sports betting and online gambling in the list of activities covered by art. 12 of the Regulatory Instruction 2005, of 2021. The article now contains section XIII as one of the taxes and contributions administered by the Federal Revenue:

“XIII – social contribution that taxes the lottery modality called fixed-odd bet referred to in section IV- Paragraph 1-A of art. 30 of Law No. 13,756, of December 12, 2018, calculated monthly, observing the provisions of §§ 18 to 20. ”

“§ 18. The values related to the social contribution referred to in section XIII of the caput must be reported to the DCTF, in the Social Security Contributions group. ”

“§ 19. The payment of the social contribution referred to in section income 9197. ” “ § 20. The payment period referred to in § 19 must be postponed to the immediately following business day, if there are no banking hours on the 20th (twentieth) day ” Source: GBM.

Edited by @_fonta   www.zonadeazar.com