The Special Secretariat of Federal Revenue of the Ministry of Finance published in the Official Gazette of the Union this Tuesday (7) RFB Normative Instruction No. 2,191, which amends previous instructions that provide for general taxation rules relating to Personal Income Tax and on the Declaration of Income Tax Withheld at Source.
Signed by the Federal Revenue Secretary, Robinson Sakiyama Barreirinhas, Normative Instruction 2,191 amends art. 11 of RFB Normative Instruction No. 1,500/2014, which deals with income tax exemption, by including:
“IX - cash prize obtained in lotteries, including fixed-odds bets referred to in art. 31 of Law No. 14,790, of December 29, 2023, up to the limit of the value of the 1st (first) range of the IRPF monthly incidence table;”
As a result, bettors' winnings from sports betting and online games are exempt up to a limit of R$2,259.20 (US$ 445), corresponding to the 1st range of the IRPF monthly incidence table.
Furthermore, the new Normative Instruction includes in art. 19, which deals with taxation exclusively at source:
“XXIII - cash prizes obtained in lotteries, including instant ones, even those for assistance purposes, even if operated directly by the State; and
XXIV - net prizes obtained from betting on the fixed-odd betting lottery referred to in art. 31 of Law No. 14,790, of 2023.
Single paragraph. For the purposes of item XXIV of the caput:
I - the net prize is considered to be the difference between the value of the prize and the amount bet, determined for each bet, after the end of a real sports-themed event, or for each session of a virtual online gaming event;
II - losses incurred in other bets or sessions are non-deductible;
III - the tax will apply:
a) on the value of the premium that exceeds the value of the 1st (first) range of the IRPF monthly incidence table;
b) at the time of payment or credit of the prize; It is
c) through exclusive taxation at source at a rate of 15% (fifteen percent); It is
IV - the betting operator agent will be responsible for calculating and collecting the IRRF relating to the operations carried out by him."
Another change concerns Normative Instruction RFB 1,990/2020 in its art. 2nd, which establishes the obligation to present the Declaration of Income Tax Withheld at Source (DIRF). Was included:
“j) fixed odds betting operating agents referred to in Law No. 14,790, of December 29, 2023;”
Given the publication of Normative Instruction 2,191, it remains to be seen what President Lula's vetoes will be like regarding the chapter of Law 14,790 that guaranteed exemption from collecting prizes from sports betting and online games up to the limit of the 1st exemption band. In the Law, it was established that the payment would be annual with exemption up to the limit of the 1st bracket. Lula vetoed the exemption and the form of annual payment.
With the new rule established by the Normative Instruction, bettors who win up to R$ 2,259.20 (US$ 445) are exempt, however, the IR will be collected at source, when the prize is credited, at a rate of 15%.
It is not yet clear whether the prize credit will be considered after an event itself or whether the incidence will occur at the time of bank transfer from the sports betting operator to the platform user's current account.
Source: GMB
