Starting in May, earnings of up to R$ 2,259.20 from sports betting will be exempt from the Individual Income Tax (IRPF) levy, as per the Normative Instruction No. 2,191 published by the Federal Revenue Service in the Official Gazette. This regulation, based on the decree that governs the taxation of lottery prizes, now extends the exemption to “fixed-odds betting,” commonly known as “bets.”
The exemption limit corresponds to the amount of the first bracket of the monthly IRPF incidence table, set at R$ 2,259.20 for May 2024. The “net prize,” which is the difference between the bet amount and the amount received, will be the amount considered for exemption.
If the earnings exceed this limit, a 15% tax will be levied on the excess amount, applied directly at the source at the time of prize payment. Thus, the beneficiary will receive the amount already with the tax deducted, without the need for additional payments to the Revenue Service.
This adjustment is part of changes in the sports betting market, regulated in December by the government. The legislation, which covers both virtual and physical bets, real and virtual sports-themed events, as well as online games, will undergo further adjustments in the second half of this year.