Zona de Azar Brazil – IBJR Urges Reversal of Veto for Brazilian Sports Betting Tax Law

Brazil.- 26th February 2024  www.zonadeazar.com The Brazilian Institute of Responsible Gambling (IBJR) released a technical note advocating for the National Congress to overturn Veto 49 of Law 14,790, enacted in 2023, which deals with the taxation of prizes in sports betting.

The veto in question pertains to the first three paragraphs of Article 31 of the bill, regarding the concept of “net prize,” tax exemption, and determination of the nature of the Income Tax to be deducted.

The organization argues that the veto will generate uncertainties regarding the possibility for players to offset their losses before paying the annual income tax. This is due to doubts about how the tax will be calculated and whether adjustments for losses will be allowed before tax payment.

Furthermore, it emphasizes that this creates a negative experience for users in the market, encouraging migration to irregular markets, consequently leading to a decline in investments in the sector, impacting even the intended revenue for the Federal Government.

Source: MAIA YOSHIYASU ADVOGADOS.

Edited by: @MaiaDigital www.zonadeazar.com