One of the biggest bookmakers in the world, the Swedish firm Betsson, is one of the few that also has a CNPJ in Brazil (short for ‘Cadastro Nacional de Pessoas Jurídicas’, the identification number of Brazilian companies issued by the country’s Ministry of Revenue). The company celebrated the Provisional Measure (PM) that changed the tax base of sports betting, and which has already been approved in Congress.
Before that modification, Brazil taxed the games by the value of the bets made, although this money only passes through the company as if it were in a bank. With the new law, to be sanctioned by president Bolsonaro, only the company's revenue will be taxed.
André Gelfi, who is Betsson's chief executive in Brazil, says that bookmakers in the country still face a problem. The incidence of 30% of income tax at source. That is, whoever bets and wins, already takes 30% less of the prize money.
The problem is not only the collection of the tax itself, but the fact that this withholding tax is not made by online bookmakers that do not have CNPJ in Brazil and, therefore, do not follow Brazilian laws. Basically, this means that the player ends up preferring international platforms where he does not pay income tax on the prizes.
Gelfi says that the subject is of interest to the company because it intends to expand its activity at the Brazilian branch. Today, Betsson offers in the country bets on horse races from all over the world and has a fantasy football game. These two games are not taxed at source.
Source: Veja.com
