The tax authority of Brazil established last Thursday the guidelines for taxing profits derived from online betting. The Special Secretary of the Receita Federal, Robinson Sakiyama Barreirinhas, signed Normative Instruction RFB No. 2,299, which modifies previous regulations and affects millions of Brazilians who participate in sports betting platforms, fixed-odds lotteries, and fantasy sports.
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The regulation, published in the Official Gazette of the Union, adds new provisions to the Personal Income Tax (IRPF) regulations and creates control mechanisms to ensure tax compliance in a constantly growing sector.
How taxes are calculated in Brazil
Betters will have to determine each year the net result of all their bets placed with different operators. The calculation requires summing winnings and subtracting losses separately in three categories: real sports events, virtual online gaming events, and fantasy sports.
Taxation is applied to the net prize, which results from summing the positive results of each category. In March of each year, taxpayers must calculate the tax on the amount exceeding the first bracket of the annual income tax table, with a rate of 15%. Payment must be made no later than the last business day of April.
Exemption for smaller winnings
According to previous regulation (RFB No. 2,191/2024), winnings obtained in lotteries and fixed-odds bets are exempt up to a monthly limit of 2,259.20 reais (approximately $400 dollars). This means that betters who win up to this amount per bet will not pay income tax on those winnings.
To facilitate the process, the Federal Revenue Service will offer an application on its website where betters can easily calculate the tax owed.
ComprovaBet: the new official document
The instruction creates ComprovaBet, a digital receipt that betting operators must provide to betters before the last business day of February of the following year. This document will be essential for taxpayers to comply with their fiscal obligations.
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The receipt will include detailed information: the name and tax identification number of the operator and the bettor, the total result in reais, the sum of winnings, and the deduction of losses for each type of bet. It will also show the bettor’s account balance at the beginning and end of the year, considering all operator brands used.
The document will carry a clear warning: taxpayers must verify if the reported amounts, added to those from other operators, generate the obligation to calculate and pay Income Tax.
Additional obligations
Taxpayers who file their Annual Income Tax Return must include the balances of their accounts on betting platforms in the Assets and Rights section.
The bettor will be responsible for paying the tax according to the information on ComprovaBet. It is important to note that losses from one bet cannot be offset against winnings from other sessions or different types of bets.
Penalties for non-compliant operators
Operator agents who fail to provide ComprovaBet will face the penalties established in Law No. 8,383 of 1991. In addition, these operators must submit the Income Tax Declaration (DIRF) for all individuals and legal entities who received payments subject to withholding during the calendar year.
The new regulation seeks to organize a sector that has grown exponentially and ensure that the State collects the corresponding taxes from this economic activity.
