Legislation
Lawmakers to hold public hearing on online gambling tax rate
By James - 25 March 2024
Deputies have approved a request put forward to the Finance and Taxation Committee to hold a public hearing to discuss the taxation of online gambling in Brazil. The request was put forward by Deputy Mário Negromonte Jr.
The deputy said that he wanted to hear from representatives of the Ministry of Finance and some companies in the betting sector “to provide necessary clarifications.” The lawmaker listed bet365, Betano, Pixbet, Sportingbet, VaideBet, MarjoSports, Pingolpara, and galera.bet. Additionally he requested the presence of The National Association of Games and Lotteries (ANJL).
“Most of the rules are already in force, but the part relating to taxation on betting comes into effect in April. Other rules still depend on government regulation. Therefore, considering that the measure is among the government’s actions to increase revenue, we believe it is necessary to maintain the debate about gambling taxes,” reads the text of the lawmaker’s request.
However the deputy was wrong in asserting that the tax rate would come into effect in April. In fact the application process is yet to begin and operators won’t be able to offer their services in Brazil until they are granted a licence by the new gambling board which comes under the Ministry of Finance. In addition lawmakers have still to decide on whether to accept President Luiz Inácio Lula da Silva’s veto on player winnings. Brazil’s original online gambling bill provided that prizes up to BRL 2,112 (the limit of the lowest Personal Income Tax bracket) would be exempt from taxation but this was vetoed by President Lula. Since then there has been considerable uncertainty over how players will be taxed.
