On March 3, the plenary of the Chamber of Deputies approved Provisional Measure (PM) 1034/21, which deals with the increase in taxation of financial institutions and the chemical industry, among other points. In the discussions, the chapter of law 13756/18 (fixed quota or sports betting) was changed, which now considers the payment of taxes on net revenue from collection, discounting income tax and prizes (GGR). This change in the tax system was an insistent request from the market to the Brazilian government.
The provisional measure received changes accepted by the rapporteur, deputy Moses Rodrigues (MDB/CE), proposed by deputy Hugo Motta (Republicans/PB) which changed the distribution of the amounts collected by sports betting. With the approval of the PM, the collection after deducting income tax and prizes will be considered for tax collection purposes.
Now the PM is already being analyzed by the Senate. In this context, Senator Rose de Freitas presented an amendment to refund said rates to half of the percentages provided for in Law No. 13,756, of 2018: 0.25% on physical bets and 0.125 applicable to bets in virtual media.
She states that "although it does not change the calculation basis of the Social Contribution on Revenue from Predictive Contests (that is, the proceeds from the collection of the fixed-rate betting lottery), the Bill reduces the rates to a fifth of those provided for in the Law No. 13.756, of December 12, 2018. Thus, the rate applicable to bets on physical media drops from 0.5% to 0.1%, and that applicable to bets on virtual media drops from 0.25% to 0, 05%."
This amendment restores said rates to half of the percentages provided for in Law 13,756, of 2018: 0.25% on bets in physical media and 0.125 applicable to bets in virtual environment. “Social Security is a patrimony of the Brazilian nation and needs to be preserved,” concludes senator Rose de Freitas in her justification.
Source: GMB
