The City Council of São Paulo today approved Bill (PL) 613/2022, sent in November by the Executive, which reduces the ISS (Tax on Services of Any Nature) to 2% for businesses that provide entertainment activities, also being including bookmakers and Fantasy Sports.
In May of this year, councilor Rodrigo Goulart sent a letter to the mayor and the Secretary of Finance attesting to the importance of these industries to “make the Municipality of São Paulo attractive for investments by companies that operate online, since this market in constant evolution and growth, will be able to bring expressive amounts of contribution to the treasury”. In November, the City Hall sent the PL to the City Council.
For the councilor, the Fantasy Sport and Sports Betting segments have been growing exponentially worldwide, including in Brazil. “It is not difficult to prove this, just check the jerseys of Serie A and B teams, advertising signs in stadiums or TV ads and social networks. And for the municipality to be more inviting to companies that invest heavily in these platforms, we need a fair and balanced regulation, with good tax incentives”, said Goulart.
The project aims to reduce the ISS for lotteries, bingo, sports betting, games and fantasy games. The objective of the municipality with the reduction is to attract companies to the city. A rapidly growing sector, the establishment of a reduced tax burden should attract and retain taxpayers with high mobility for the municipality. Encouraging job creation and the development of the local economy.
For the president of the Brazilian Association of Fantasy Sports (ABFS), Rafael Marchetti Marcondes, the measure will have a positive impact on the growth of the industry in Brazil. “The municipality’s support in recognizing Fantasy as an electronic sport is a modality that encourages technological development, will certainly grow the entertainment sector in the city and help São Paulo to consolidate itself as a technology hub”, said Marcondes.
The PL proceeds to the executive’s sanction to effectively enter into force.
