Earlier this week, the Federal Revenue Service (RFB) of Brazil confirmed its ruling on personal income tax (IRPF) that will be applied to ‘net prizes’ obtained via betting, lotteries and online gambling.
The RFB approved the government’s modality to impose a 15 per cent personal income tax on prizes and winnings above BRL 2824 (around €530).
For net winnings/prizes below BRL 2824, the RFB will exempt the 15 per cent tax charge. The figure is reported to be equivalent to two average monthly wages for Brazilian consumers.
Net prizes of the Bets market will be determined as the difference between the prize amount won and the total amount wagered by the customer.
Replicating the same mechanisms as state lotteries, the 15 per cent tax charge will be applied ‘at source’ by operators when crediting customer winnings.
The framework will apply changes to Brazil’s..