The Porto Alegre City Council has approved a measure to reduce the Service Tax (ISSQN) related to sports betting, lotteries, and iGaming services to 2%.
This amendment aims to position Porto Alegre as a growing hub in the gaming industry.
"By reducing taxes, Porto Alegre hopes to position itself as a center in this field, which is expected to create job opportunities, boost the local economy, and increase tax revenue," said Finance Minister Rodrigo Fantinel.
This move is consistent with a similar initiative in São Paulo, which reduced the ISS rate for iGaming and fantasy gaming companies to 2% in December 2022. In November 2024, São Paulo further simplified the industry by allowing companies to issue a single invoice per month for sales results.
By adopting this strategy, Porto Alegre hopes to attract businesses in the industry, just like São Paulo.
The tax reduction is part of a larger effort by Porto Alegre to promote economic development, with 62 other activities already benefiting from reduced tax rates. The amendment was proposed by Councilman Cláudio Janta and is included in a bill that extends the ISS authorization until December 31, 2026.
Fantinel noted: "This activity complements the other 62 activities for which we have already reduced taxes."
The proposal has now been submitted to the executive branch for final approval. If passed, it will mark a significant step in the city's plan to create an environment conducive to innovation and economic growth in the gaming industry.
