Federal Revenue Service of Brazil has issued new guidelines explaining how income tax applies to winnings from fixed-odds sports betting and fantasy sports competitions. The clarification aims to help taxpayers understand how to calculate taxable gains and report betting income correctly.
When Betting Winnings Become Taxable
Under the new rules, winnings from betting platforms and fantasy sports become taxable only when players generate a net annual profit.
Tax authorities calculate the net gain by subtracting the total amount spent on bets during the year from total winnings. If the result exceeds BRL 28,467.20, the amount above that threshold is taxed at 15%.
To verify their results, bettors must provide a transaction report called “ComprovaBet.” Betting platforms issue this document and it summarizes all deposits, wagers, and winnings recorded during the year.
Digital Tool for Tax Calculation
Receita Federal has also launched a digital tax calculator that allows users to estimate their taxable income and determine the final amount owed. The tool is designed for individuals who receive prizes from multiple betting platforms or fantasy competitions.
If the system identifies tax liabilities, taxpayers can request installment payments through the e-CAC Portal, the government’s online tax platform.
Installment Payment Options
Taxpayers who owe income tax on betting profits can apply for a simplified installment plan through the system.
Key conditions include:
- The tax debt must be registered under revenue code 6313, which applies to betting-related income.
- Debts can be divided into up to 60 monthly payments.
- Each payment must be at least BRL 200.
The installment plan becomes active once the taxpayer completes the first payment using the generated payment slip.
Improving Compliance and Transparency
According to the Federal Revenue Service, the updated guidelines aim to simplify compliance for betting platform users and provide clearer rules on how gambling income should be reported and taxed.
