The federal government has introduced a series of changes to tax rules and tax benefits, including new rules for online betting — known as “bets,” aiming to strengthen cash flow and promote an adjustment in public accounts for 2025.
The Ministry of Treasury met with Congressional leaders and defined an agenda that brings changes to different sectors of the economy, mainly online betting, banks and investments previously exempt from tax.
Changes to bets and exempt investments
One of the main changes is the increase in the tax on sportsbooks, the so-called “bets”. As a result of these changes, the rate on gross gaming revenue (GGR) will increase from 12% to 18%.
The government explained that this percentage applies to the amount left over for the company after paying prizes to bettors.
The measure, according to the Ministry of Treasury, is a way to offset other reductions and ensure more revenue for the public coffers. Another relevant change is the end of the exemption for certain types of popular investments, such as LCI (Real Estate Credit Letter) and LCA (Agribusiness Credit Letter), which currently do not pay tax.
Under the new rules, these products will now have a 5% tax rate. The same applies to CRIs (Real Estate Receivables Certificates) and CRAs (Agribusiness Receivables Certificates), which will no longer be subject to the exemption that existed until then. The government’s argument is that these exemptions created distortions, since some types of investments paid significantly higher rates.
Rates for banks and changes in IOF
The package also provides for the standardization of contribution rates on bank profits. Previously, there were three different amounts, and now only 15% and 20% will remain, eliminating the lowest, which was 9%. The measure seeks to balance taxation among different financial institutions.
Another important new development concerns the IOF (Tax on Financial Transactions) on operations involving cashed-out risk, a type of credit frequently used by small and medium-sized companies that sell to larger companies.
The government will reduce the IOF charge on these transactions by 80%, completely removing the fixed part of the tax and adjusting the daily part to maintain greater coherence with the taxation of credit in general.
Validation and next steps
These decisions have already been presented to Congress and await final approval from President Lula, who is only expected to make a statement after returning from an international trip.
According to reports from parliamentarians who participated in the discussions, the proposed changes seek not only to strengthen revenue collection, but also to correct distortions and respond to the dissatisfaction generated by previous decrees, especially with regard to the IOF.
The government will hold another meeting to define where it will cut 10% of direct public administration spending. Furthermore, it considers this measure essential to ensure fiscal balance in 2025.
Ultimately, these decisions are part of a joint effort between the Executive and Legislative branches to find a viable solution and avoid an environment of tension like that caused by previous measures.
