The National Congress overturned on Thursday (9) President Lula's vetoes to sections of Law 14,790/2023 that deal with the way Income Tax is levied on prizes from sports betting and fantasy sports.
Since the law was enacted, ABFS had been advocating for the overturning of these vetoes by the National Congress.
The provisions that are now back in Law 14,790/2023 concern three points, the first being the definition of "net prize," which determines the calculation basis for IRPF in the case of prize payments to fantasy sports players.
Another point is about the exemption threshold of the annual progressive IRPF table, which defines the tax payment based on the net prize that exceeds this value.
And the third veto overturned is about the deadline for the calculation and payment of Income Tax, which allows the calculation to be based on the annual calculation of net prizes received by fantasy sports players.
According to ABFS's Director of Government Relations, Bárbara Teles, the definition contained in ordinary law is beneficial for the market and for players.
"The overturning of the vetoes gives the fantasy sports sector more security and reinforces the commitment to transparency with its athletes, as well as consumer protection, who now knows clearly how the collection of IRPF on prizes will occur," she states.
Teles adds a thank you to those involved in the positive outcome. "The Brazilian Fantasy Sports Association thanks the sensitivity of the parliamentarians, advisors, and government for agreeing to this overturn, understanding the importance of ensuring proper legal security for the sectors involved, especially in electronic sports."
The decision "represents an important advancement for the growth of Brazilian companies in the fantasy sector in Brazil, which now has correct and fair tax rules," she concludes.
Source: GMB
