Tax | Brazilian Federal Revenue Services (Receita Federal) Clarifies Rules for Taxation of Online Betting and Gaming

The Brazilian Federal Revenue Service (Receita Federal) has released new clarifications on the taxation of income obtained by individuals residing in Brazil from online betting and gaming.

With the significant growth of this market and the popularization of digital betting platforms, tax rules are becoming increasingly relevant for bettors.

The new guidelines establish differences in taxation according to the origin of the prizes, which directly impacts the way taxpayers declare and pay taxes.

1. Prizes from national sources: Income from betting and gaming that involves performance evaluation is considered “remuneration” and is subject to taxation at source based on the progressive monthly table of the Personal Income Tax (IRPF). The amount collected at source is considered an advance payment of the tax due in the Annual Adjustment Declaration (DAA).

2. Prizes from international sources: Income obtained through foreign platforms must be declared and taxed via the Carnê-Leão tax return in the month in which it is received, with no possibility of deducting expenses or offsetting losses. This income must also be included in the DAA, ensuring tax compliance.

3. Fixed-odds bets (“bets”): For net prizes, after deducting losses in the same year, a 15% tax is applied whenever the amount exceeds the limit of the first band of the annual progressive table. The tax must be paid by the last business day of the month following receipt of the prize, without withholding tax.

The recent COSIT Consultation Solution No. 2/2025 reinforces the trend towards stricter oversight of the betting sector, establishing more detailed rules for each type of income. Despite advances in regulation, there is still room for questions and doubts, especially regarding the complexity of calculating and collecting taxes. Given the evolution of online betting, the adoption of new regulatory and legislative adjustments is expected in the coming years, with the aim of greater legal stability and transparency.

Share:

Share on facebook
Share on linkedin

Subscribe to
our Newsletter:

* Mandatory fields