The Federal Revenue Service revealed how to declare earnings and various tax obligations.
Brazil.- The Federal Revenue Secretariat of Brazil (Receita Federal) published a document on consultations related to the taxation of earnings obtained from betting in Brazil. The data explain how, among other aspects, these earnings can be declared on the income tax and also explain the tax obligations of bonuses obtained abroad.
The document, signed by Rodrigo Augusto Verly de Oliveira, general coordinator of Income Taxation, creates the regulatory framework to understand how taxation is carried out. Among the points addressed is the assimilation of the supposed partners of a Participation Account Society (SCP) to legal entities, for tax purposes. Although they are individuals, partners must register with the CNPJ and comply with the corresponding obligations.
Another rule establishes that earnings from betting in Brazil are subject to tax at the source, according to the progressive monthly table and the amount is anticipated in the Annual Adjustment Declaration (DAA). Regarding prizes obtained from betting abroad, taxes are collected using the progressive table in force in the month of receipt. The tax levies the total of prizes obtained in the month, without deducting expenses or compensating losses.
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Regarding prizes from fixed quota lotteries that exceed the exemption range of the Personal Income Tax (IRPF), they will be taxed at 15 percent and the payment must be made before the last business day of the month following its calculation.
The president of the National Institute of Social Security (INSS), Alessandro Stefanutto, stated that the agency is evaluating prohibiting the use of money from the Continuous Provision Benefit (BPC) in sports betting. This benefit is granted to people with disabilities and low-income elderly adults.
“The BPC is to mitigate misery. If it is used for sports betting, either we are granting the wrong benefit, because the person is not miserable, or there is a misuse of resources,” he stated in an interview with Estadão.
