Head of Brazilian tax authority says players should pay tax on winnings
The Parliamentary Inquiry Commission (CPI) on betting has heard from the Special Secretary of the Federal Revenue, Robinson Sakiyama Barreirinhas who advocated for a stricter tax treatment regarding bettors as a way to discourage online gambling. He stated that the taxation of winnings from betting, which was rejected by the National Congress in 2024, needs to be revisited.
“My position is that bettors should indeed pay income tax because, in this case, the tax does not serve a revenue-generating function but rather a deterrent function, to not encourage gambling. That’s how it works worldwide. We are treating bettors better than we treat a company under real profit taxation in Brazil. It’s madness,” he said
According to the Secretary, the law provides for taxation but makes a caveat by considering it as “net prize,” after deducting losses incurred from other bets. For Barreirinhas, this effectively represents an exemption.
The chair of the committee, Senator Dr. Hiran, stated online gambling companies have been proliferating “indiscriminately” in the country, resulting in a “gigantic” tax waiver.
Hiran cited a study from the Senate Advisory indicating that the tax waiver from betting could amount to about R$ 50 billion in taxes between 2019 and 2030.
According to the Senate News Agency from the perspective of the committee’s rapporteur, Senator Soraya Thronicke, the National Congress could consider a change in the legislation regarding online betting bringing up the Selective Tax introduced by the tax reform. According to the senator, tobacco can be taxed at 250% and alcoholic beverages up to 61% — rates much higher than those applied to online gambling.
Senator Damares Alves commented that there is a lot that is “murky” in the world of online betting. She suggested holding a closed meeting of the CPI so that Federal Revenue officials could speak more freely without the risk of breaching any confidentiality. Damares also expressed her belief that data is not properly cross-referenced within the Brazilian Tax Authority and that the agency has “failed badly” in overseeing betting activities.
The request to invite the Secretary of the tax authority was presented by Senator Izalci Lucas. He wanted to know the role of the Federal Revenue in identifying the loss of tax collection between 2019 and 2023. The senator also asked what mechanisms the tax authority had proposed or implemented to monitor and block payments to irregular sites via payment method Pix which is managed by the Central Bank.
However, Barreirinhas stated that the Tax office does not have authority over Pix. He also mentioned that the annual data from betting companies is only now reaching the tax office, as the law regulating fixed-odds betting came into effect in 2024.
“We had an imprecise regulatory environment. Now there is legislation. I have 80 companies operating legally and dozens outside the law. I have to treat them differently. I cannot disincentivize those that have complied with the law,” Barreirinhas said.
Soraya Thronicke inquired about the Secretary’s opinion on a possible retroactive tax on the bets due to activities prior to regulation between 2018 and 2023. Barreirinhas agreed with retroactive taxation but admitted there may be “operational difficulties.”
The CPI of Bets was created to investigate the influence of online betting on the budgets of Brazilian families, the association with criminal organizations involved in money laundering practices, and the use of digital influencers in promoting and disclosing these activities. The commission is authorized to operate until April 30.
