Brazil’s Federal Revenue Service (Receita Federal) has introduced new rules on how individuals must declare and pay income tax on online betting winnings. The changes were formalised through Normative Instruction RFB No. 2,299, published in the Official Gazette on Thursday the 18th and signed by Robinson Sakiyama Barreirinhas, Special Secretary of the Federal Revenue of Brazil.
The updated framework clarifies how taxpayers should report and settle IRPF on winnings from lotteries, fixed-odds betting, and fantasy sports. As a result, the measure improves consistency, transparency, and oversight in Brazil’s rapidly expanding online betting market.
What the New Regulation Covers
The normative instruction amends existing tax rules by adding a new provision to Article 21. Specifically, it covers net prizes earned from fixed-odds lottery betting and fantasy sports, as defined under Article 31 of Law No. 14,790 of December 29, 2023.
Importantly, the regulation applies only to individual taxpayers. It covers three types of betting activity: real sporting events, virtual events and online games, and fantasy sports competitions. From now on, taxpayers must declare income from these categories annually in their income tax returns.
How Players Must Calculate Net Winnings
Under the new rules, players must calculate their annual net result across all licensed betting operators. To do this, they subtract total losses from total winnings for each betting category over the course of the year.
This approach replaces earlier, more fragmented interpretations. Instead of assessing individual bets, taxpayers now consider their overall annual outcome. However, taxation applies only if the net prize exceeds the first exemption bracket of the annual IRPF threshold.
Tax Rate and Exempt Amounts
The regulation sets a 15 percent tax rate on net gains that exceed the annual exemption limit. At the same time, individual prizes of up to R$2,259.20 remain exempt from income tax.
Taxpayers must settle any tax due during the annual filing period, which typically takes place in March. Only the portion of net income that exceeds the exemption threshold in the progressive tax table is subject to tax.
ComprovaBet Introduced to Support Compliance
One of the most significant changes is the introduction of ComprovaBet, a standardised digital document designed to support tax compliance.
Licensed betting operators must provide ComprovaBet through their platforms to help bettors accurately calculate their annual net results. In practice, this document gives players a clear and official record to support their tax declarations.
What ComprovaBet Must Include
Operators must make ComprovaBet available by the last business day of February following the betting year. The document must list the operator’s legal name and CNPJ, the bettor’s name and CPF, and the total annual result broken down by betting category.
In addition, it must show consolidated results across all brands operated by the same company, as well as the bettor’s account balance at the end of both the betting year and the calendar year. Together, these requirements aim to reduce disputes, prevent underreporting, and align operator data with taxpayer filings.
Impact on Brazil’s Betting Market
Overall, the new rules strengthen Brazil’s broader effort to formalise and regulate online betting. By standardising reporting and documentation, the Federal Revenue Service aims to improve compliance while giving bettors and operators greater legal clarity.
As the market continues to grow, these measures mark an important step in fully integrating gambling income into Brazil’s tax and regulatory framework in a more structured and transparent way.
