TLDR Brazil’s Federal Revenue Service issued new guidelines on how bettors must calculate and pay income tax on winnings from sports betting and fantasy sports Winnings are only taxable if a bettor’s net annual profit exceeds BRL 28,467.20, with amounts above that threshold taxed at 15% Bettors must provide a “ComprovaBet” document from betting sites summarizing all their annual transactions A new digital tool has been launched to help bettors calculate their tax liability Taxpayers can pay what they owe in up to 60 monthly installments of at least BRL 200 through the e-CAC portal
Brazil’s Federal Revenue Service, known as Receita Federal, released new tax guidelines on Tuesday aimed at people who earn money from fixed-odds sports betting and fantasy sports competitions.
The rules explain how bettors should calculate income tax on their winnings. They also lay out the steps for those who want to pay their taxes through an installment plan.
The guidelines cover when income tax kicks in for bettors. They also spell out what documents a bettor needs to provide as proof of their financial results from betting platforms.
When Do Betting Winnings Get Taxed?
Winnings from fixed-odds sports betting and fantasy sports are only taxable when a bettor makes a net profit over the course of a year.
The net gain is figured out by subtracting the total amount a bettor spent in a year from the total amount they won in that same year.
If the net gain comes in above BRL 28,467.20, the amount over that threshold is taxed at a flat rate of 15%. Anything below that amount is not taxed.
To prove their results, bettors need to get a document called “ComprovaBet” from their betting platforms. This document is a summary of every transaction a bettor made during