In a meeting this Thursday (9), the National Congress overturned President Lula's vetoes on items related to the taxation of Income Tax on prizes in sports betting and online gaming. It was defined the annual charge of IR and the non-incidence on values below the first exemption bracket (R$ 2,259.20).
Thus, Law 14.790/2023 returns to its original format, ensuring fairer taxation aligned with the expectations of the sports betting and online gaming sector, which advocated for the exemption bracket and the annual collection of Income Tax on the net result of the bets.
By rejecting items 1 to 3 of the presidential veto, the National Congress accepts what sector leaders had been demonstrating about the risks of bettors migrating to the illegal market. And follows the best examples of what happens in already well-established regulated markets.
This week, the Secretariat of the Federal Revenue of the Ministry of Finance issued a Normative Instruction (2.191/2024) that had already defined that up to the first exemption bracket of the progressive IR table, the prizes would not be taxed.
Given the rejection of the Congress to items 1 and 3 of presidential veto no. 49, the Secretariat of the Federal Revenue will have to reformulate the Normative Instruction issued just two days ago.
First repercussions in the gaming sector are positive
The National Association of Games and Lotteries (ANJL) congratulates the National Congress for the correct decision, this Thursday (09), to overturn the presidential vetoes on the sections about Income Tax of prizes from sports betting and online games of Law 14.790/2023.
The parliamentarians decided, as the ANJL and other sector entities had been defending, for the annual collection of the tax and for the non-incidence of taxation for prizes below the first exemption bracket of the IRPF.
By restoring what had already been approved by the Legislature at the end of last year, the Congress ensured a coherent taxation aligned with international practices, preventing the migration of players to unregulated sites that do not collect taxes.
“In recent weeks, we have worked intensively with deputies and senators, and also with the Executive, bringing understanding about the negative impacts of maintaining the vetoes for the betting market in Brazil. The result now brings relief to the sector, which will continue to operate in a fair, transparent, and integral environment for both bettors and the bets,” said Plínio Lemos Jorge, president of the ANJL.
Regarding Normative Instruction 2.191/2024 of the Federal Revenue, published on Tuesday, the market now expects that, in terms of the period of Income Tax collection, the norm will be adapted to Law 14.790.
Source: GMB
