Brazil is to implement a 15 per cent personal income tax on sports betting covering defined thresholds.
Prize winnings above BRL2824 (around €530) will be subject to the tax, which was confirmed by Brazil’s Federal Revenue Service on Tuesday.
The rule covers net prizes, which are defined as the difference between the value of the prize and the amount bet.
Operators are responsible for monitoring prizes and calculating if any income tax should be deducted from winnings, the rule states, so they are “contributing to the efficient application of tax legislation.”
The personal income tax will bring longstanding laws on the Declaration of Income Tax Withheld at Source and the Digital Tax Bookkeeping of Withholdings and Other Information Tax in line with the regulated Brazilian sports betting market.
