The Brazilian Federal Revenue Service (RFB) announced new regulations for the taxation of net prizes obtained from sports betting. RFB Normative Instruction No. 2,191/2024, published in the Official Gazette of the Union, covers both fixed-odd betting and online games.
The rule, signed by the Special Secretary of the Federal Revenue, Robinson Sakiyama Barreirinhas, changes two previous normative instructions, RFB nº 1,500 of 2014 and RFB nº 1,990 of 2020. Therefore, both deal with the Declaration of Income Tax Withheld at Source ( IRRF).
Fixed odds sports bets will be taxed at source
Thus, according to the new regulations, cash prizes obtained in lotteries, including fixed-odd lotteries, are exempt from income tax up to a limit of R$2,259.20. Therefore, this means that bettors who win up to this amount from sports betting are exempt from IRRF.
The rule establishes that net prizes obtained from fixed-odd sports bets will be taxed at source. In this way, the net prize will be defined as the difference between the prize value and the bet amount.
In other words, it will be determined for each bet, after the end of a real sporting event or an online gaming session. Therefore, losses incurred on other sports bets or sessions cannot be deducted.
Therefore, the tax will be levied on the value of the premium that exceeds the value of the first range of the monthly IRPF incidence table, at the time of payment or credit of the premium.
The rate is 15% and will be collected exclusively at source. The sports betting operator is responsible for calculating and collecting IRRF relating to the operations carried out.
Below is the full normative instruction.
RFB NORMATIVE INSTRUCTION No. 2191, OF 05/06/2024
Amends RFB Normative Instruction No. 1,500, of October 29, 2014, which provides for general taxation rules relating to Personal Income Tax, and RFB Normative Instruction No. 1,990, of November 18, 2020, which provides for the Declaration of Income Tax Withheld at Source.
THE SPECIAL SECRETARY OF FEDERAL REVENUE OF BRAZIL, using the powers conferred on him by art. 350 of the Internal Regulations of the Special Secretariat of the Federal Revenue of Brazil, approved by Ordinance ME nº 284, of July 27, 2020, and in view of the provisions of art. 14 of Law No. 4,506, of November 30, 1964, in art. 56 of Law No. 11,941, of May 27, 2009, and in art. 31 of Law No. 14,790, of December 29, 2023, resolves:
Art. 1 RFB Normative Instruction No. 1,500, of October 29, 2014, comes into force with the following changes:
“Art. 11. ……………………………………………………………………………..
………………………………………………………………………………………………………………..
IX – cash prize obtained in lotteries, including fixed-odds bets referred to in art. 31 of Law No. 14,790, of December 29, 2023, up to the limit of the value of the 1st (first) range of the IRPF monthly incidence table;
……………………………………………………………………………………………………..” (NR)
“Art. 19. …………………………………………………………………………………………….
………………………………………………………………………………………………………………..
XXII – amounts paid to participants or beneficiaries of social security benefit plans, structured in the defined contribution or variable contribution modalities, from supplementary pension entities and insurance companies, as benefits or redemptions of accumulated values that have opted for the regime of taxation referred to in art. 1 of Law No. 11,053, of December 29, 2004;
XXIII – cash prizes obtained in lotteries, including instant ones, even those for assistance purposes, even if operated directly by the State; It is
XXIV – net prizes obtained from betting on the fixed-odd betting lottery referred to in art. 31 of Law No. 14,790, of 2023.
Single paragraph. For the purposes of item XXIV of the caput:
I – the net prize is considered to be the difference between the value of the prize and the amount bet, determined for each bet, after the end of a real sports-themed event, or for each session of a virtual online gaming event;
II – losses incurred in other bets or sessions are non-deductible;
III – the tax will apply:
a) on the value of the premium that exceeds the value of the 1st (first) range of the IRPF monthly incidence table;
b) at the time of payment or credit of the prize; It is
c) through exclusive taxation at source at a rate of 15% (fifteen percent); It is
IV – the betting operator agent will be responsible for calculating and collecting the IRRF relating to the operations carried out by him.” (NR)
Art. 2 RFB Normative Instruction No. 1,990, of November 18, 2020, comes into force with the following changes:
“Art. 2º ………………………………………………………………………………………………..
I – ………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
h) institutions managing or intermediating funds or investment clubs;
… …………………………………………………………………………………………………………
j) fixed-odd betting operating agents referred to in Law No. 14,790, of December 29, 2023; It is
………………………………………………………………………………………..” (NR)
Art. 3 This Normative Instruction comes into force on the date of its publication in the Official Gazette of the Union.
ROBINSON SAKIYAMA BARREIRINHAS
