With an eye on gamblers, the Federal Revenue warns that, currently, any prize paid in cash to a gambler that exceeds R$1,903.98 (US$ 399), that is the exemption range, is subject to Income Tax.
To explain better, in the case of sporting contests in general, the Income Tax must be withheld at source by the operator, at the rate of 30%, before the transfer of the prize amount is made to the winner (art. 14, Law 4.506/ 1964).
In practical terms, the winner does not collect the tax, as the obligation has been transferred to the operator, who is responsible for its withholding. That is, whenever the player plays in a national lottery, there is little he can do to escape the 30% Income Tax.
According to Brazilian law, from the total collected by betting sites and apps, the following will come out:
The rest of the proceeds will be distributed to the education area, to the National Public Security Fund (FNSP) and to clubs that have donated their symbols for sponsorship.
Does profit need to be reported?
If the taxpayer is already obliged to file the Income Tax Return, he must inform any amount, including what is received via bet, as there is a risk of falling into the fine mesh of the Revenue.
If the taxpayer is considered exempt from a declaration, and the value of the prize does not exceed R$ 40,000 (US$ 8,400), it is not necessary to report to the Federal Revenue Service. Those who earn up to R$ 22,847.76 (US$ 4,800) annually are exempt.
How to declare values?
The amounts can be recorded in the “Income Subject to Exclusive/Definitive Taxation” form, in line “12 – Others”. After selecting the file, simply fill in the CPNJ of the betting platform and describe the value.
Source: Yahoo Finanças
