Law 14,790 was published in the Official Gazette of the Union this Wednesday (22), which provides for the lottery modality called fixed-odd betting. The publication is due to the rejection of vetoes by the National Congress of articles dealing with income tax on bettors.
THE PRESIDENT OF THE REPUBLIC
I make known that the National Congress decrees and I promulgate, pursuant to paragraph 5 of art. 66 of the Federal Constitution, the following vetoed parts of Law No. 14,790, of December 29, 2023:
"Art. 31. .............................................................................................................
§ 1º For the purposes of this article, net prize is defined as the positive result obtained from fixed-odds bets made each year, after deducting losses incurred from bets of the same nature.
§ 2º The tax referred to in the caput of this article will apply to net prizes that exceed the value of the first bracket of the annual progressive IRPF table.
§ 3º The tax referred to in the caput of this article will be calculated annually and paid by the last business day of the month following the calculation.
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Brasília, May 21, 2024; 203rd year of Independence and 136th year of the Republic
LUIZ INÁCIO LULA DA SILVA
President of the Federative Republic of Brazil
With the promulgation, it is established that the Income Tax will be applied to the bettor's net gain after deducting losses from bets of the same nature.
Additionally, it will only be applied to the amount that exceeds the first bracket of the annual progressive IRPF table (R$ 2,259.20 / US$ 442).
The tax must be paid annually by the last day of the month following the calculation.
Following the promulgation, the Federal Revenue Service will have to issue a new Normative Instruction on the collection of the Income Tax. In the first week of May, the agency issued N.I. 2,191, but the document stated that the tax would be due on all prizes. With the decision that it should be applied to the net gain calculated over a year, the immediate revocation of the instruction and the issuance of a new one is expected.
Source: GMB
