On this Tuesday (7), the Official Gazette of the Union published Normative Instruction 2.191, which addresses the taxation rules of individual income tax. It establishes an exemption from IR for prizes received in lotteries, including fixed quota betting, up to the limit of the 1st bracket of the monthly incidence table of IRPF, which has been set at R$ 2,259.20 since February. This decision contradicts President Lula's veto of the chapter of Law 14.790 that would guarantee such exemption.
The Special Secretariat of the Federal Revenue of the Ministry of Finance published in the Official Gazette of the Union this Tuesday (7) the Normative Instruction RFB No. 2.191, which amends previous instructions that provide general taxation rules related to the Income Tax of Individuals and the Declaration of Income Tax Withheld at Source.
Signed by the Secretary of the Federal Revenue, Robinson Sakiyama Barreirinhas, Normative Instruction 2.191 amends Article 11 of Normative Instruction RFB No. 1.500/2014, which deals with income tax exemption, to include:
“IX - cash prize obtained in lotteries, including fixed quota betting as referred to in Article 31 of Law No. 14.790, dated December 29, 2023, up to the limit of the value of the 1st (first) bracket of the monthly incidence table of IRPF;”
Thus, the winnings of bettors in sports betting and online games are exempt up to the limit of R$ 2,259.20, corresponding to the 1st bracket of the monthly incidence table of IRPF.
In addition, the new Normative Instruction includes in Article 19, which deals with taxation exclusively at source:
“XXIII - cash prizes obtained in lotteries, including instant ones, even those for charitable purposes, even if operated directly by the State; and
XXIV - net prizes obtained in fixed quota lottery betting as referred to in Article 31 of Law No. 14.790, of 2023.
Sole paragraph. For the purposes of subsection XXIV of the heading:
I - net prize is considered the difference between the prize amount and the bet amount, calculated for each bet, after the closure of a real sports-themed event, or for each session of a virtual online game event;
II - losses incurred in other bets or sessions are non-deductible;
III - the tax will apply:
a) on the prize amount that exceeds the value of the 1st (first) bracket of the monthly incidence table of IRPF;
b) at the time of payment or credit of the prize; and
c) through exclusive taxation at source at a rate of 15% (fifteen percent); and
IV - the betting operator agent is responsible for the calculation and collection of the IRRF related to the operations performed by him."
Another change concerns Normative Instruction RFB 1.990/2020 in its Article 2, which establishes the obligation to present the Declaration of Income Tax Withheld at Source (DIRF). It was included:
“j) the fixed quota betting operators as referred to in Law No. 14.790, dated December 29, 2023;
”
With the publication of Normative Instruction 2.191, it remains to be seen how the vetoes by President Lula to the chapter of Law 14.790 that guaranteed the exemption from collection of prizes from sports betting and online games up to the exemption limit of the 1st bracket will be addressed. In the Law, it had been established that the collection would be annual with the exemption up to the limit of the 1st bracket. Lula vetoed the exemption and the form of annual collection.
With the new rule, the bettor who wins up to R$ 2,259.20 is exempt, but the IR collection will be at source, at the time of the prize credit, at a rate of 15%.
It is still unclear whether the prize credit will be considered after an event itself or if the incidence will occur at the time of the bank transfer from the sports betting operator to the user's bank account.
Source: GMB
