Senate approves tax rate increase on online betting in Brazil
Senate approves tax rate increase on online betting in Brazil
The Senate plenary approved PLP 128/2025 on Wednesday night (17) that reduces federal tax benefits by 10% across various sectors while simultaneously increasing taxation on online betting companies and fintechs in Brazil.
The bill received 62 votes in favour and 6 against, and will now proceed to the President of the Republic for sanction. The vote came after the bill was approved on the same day in the Chamber of Deputies where it received 10 votes in favour and 85 against.
The report on the matter was presented by Senator Randolfe Rodrigues, who is the government’s leader in Congress.
As reported by the Senate News Agency, in defending the bill, Randolfe stated that federal tax benefits need constant evaluation and monitoring to prevent increased social inequality.
He emphasized that the proposal aims to reduce these incentives for greater transparency and control over expenditures, promoting fiscal responsibility and addressing distortions caused by unassessed measures.
In terms of betting companies, the taxation is set to rise from 12% to 13% in 2026, 14% in 2027, and 15% in 2028, aiming to bolster the social security budget.
Meanwhile the increase in taxation on capital interest rates will rise from 15% to 17.5%, while taxes on fintechs and capitalizing companies will increase from 15% to 20% over the coming years.
The law’s amendments will largely take effect on January 1, 2026, with some requiring a transition period of 90 days.
The industry could also face an additional excise tax on betting via another bill. Bill PL 5582 of 2025, which would put in place a 15% Contribution for Intervention in the Economic Domain (CIDE) tax on bettor deposits was approved earlier this month by the Constitution and Justice Committee (CCJ) of the Senate. However further debate on the bill has been delayed until next year.
