Currently, sports betting sites have a big disadvantage compared to international competitors: withholding taxes from the prizes. But under a new law sanctioned by Bolsonaro, only the company’s revenue will be taxed.
A new Provisional Measure brings new opportunities on the national scene, where companies like Betsson are already celebrating the change that indicates a new path to the sport in Brazil.
VEJA has prepared a news item that explains more in depth about the change and how it impacts sports betting sites.
Check out the news about sports betting sites in full below:
One of the biggest bookmakers in the world, the Swedish company Betsson, is one of the few that also has a CNPJ in Brazil. The company celebrated the Provisional Measure that changed the tax base of sports betting and which has already been approved in Congress.
Before, Brazil taxed the games by the value of the bets made, although this money only passes through the company as if it were in a bank. With the new law, to be sanctioned by Bolsonaro, only the company’s revenue will be taxed.
André Gelfi, who is Betsson’s chief executive in Brazil, says that bookmakers in Brazil still face a problem. The incidence of 30% of income tax at source. That is, whoever bets and wins, already takes 30% less of the prize money.
The problem is not only the collection of the tax itself, but the fact that this withholding tax is not made by online bookmakers that do not have CNPJ in Brazil and, therefore, do not follow Brazilian laws. Basically, this means that the player ends up preferring international platforms where he will not pay income tax on the prizes.
Gelfi says that the subject is of interest to the company because it intends to expand its activity at the branch. Today, Betsson in Brazil bets on horses all over the world and has a fantasy football game. These two games are not taxed at source.
