Law 14,790/23, approved in December last year, established that operators of the Fixed Quota Lottery (sports betting) will receive 88% of the GGR (bets minus prizes) cover its operating and maintenance expenses.
This generated uncertainty in the sector regarding the tax base for Tax on Services (ISS by its name in Portuguese), Social Integration Program (PIS) and Contribution to Financing Social Security (COFINS) purposes, since the definition of what the price of the service would be was still absent.
For this reason, the partners of the law firm MAIA YOSHIYASU, Luiz Felipe Maia and Marcelo Vicentini, together with the National Association of Games and Lotteries (ANJL) met with the São Paulo City Hall to explain the need for an interpretative standard that would provide security to companies that wish to establish themselves in the city of São Paulo.
“After a fruitful debate with the municipal authorities, the legal grounds brought by sector representatives were accepted by the Municipal Finance Secretary, resulting in the publication of a Normative Opinion last Friday,” explains Luiz Felipe Maia.
The Normative Opinion of the Municipal Department of Finance clarifies that:
“Art. 1st Non-taxable transfers by the Tax on Services of Any Nature (ISSQN) are considered to be the deduction of the amounts referred to in items III and V of the "caput" of the art. 30 of Law No. 13,756, of December 12, 2018, as amended by Law No. 14,790, of December 29, 2023, as well as the percentage of 12% of the proceeds from the collection of the lottery of fixed-odd bets in physical or virtual, with a destination established by § 1º-A of the same legal provision.”
The Treasury Secretariat’s Normative Opinion is already valid for the city of São Paulo.
When hailing the victory over City Hall's understanding, Luiz Felipe Maia states: “With this, the municipality of São Paulo presents itself as a highly attractive option to host fixed-odd betting companies, offering the lowest tax over service rate in the country (2%), combined with the correct definition of the calculation basis (88% of GGR).”
Source: GMB
