For the lawyer specializing in Gaming, gains from sports betting and online gaming sites based abroad are not illegal and are liable to tax, and must be included in the individual income tax return (IRPF).
Of course, to complete the legal path of the profits obtained abroad, Brazilian bettors must follow a procedure as explained by the specialist: “Sports bets must be declared even when they are below the exemption amount, through the‘ Carnê-Leão ’program, made available by the Ministry of Finance.”
“Based on the IRPF monthly progressive table, the software calculates the amount to be collected, according to the rate of the month. In the IRPF form, the amounts referring to sports betting are classified as ‘taxable income received from individuals and from abroad’”, adds Maia to close the circuit of legality.
Luiz Felipe Maia has over 19 years of professional experience involving structuring businesses in Brazil. He received several international awards in recognition of his role as a gaming and technology lawyer in Brazil and was selected by the international publication Lawyer Monthly among the 100 best lawyers in the country. He has given lectures at ICE London, at IE - Instituto de Empresa Business School, in Madrid, at Juegos Miami, at IMGL in San Diego and at EiG Totally Gaming in Barcelona.
It should be remembered that sports betting has been legalized in December 2018 but its regulation is still in development with no release date. The COVID-19 pandemic will surely delay this process by which companies will know how they will be able to operate in the local market to start paying taxes in Brazil.
Maia explains that “gambling has been banned in Brazil since 1946, but a quick search on the internet takes us to a multitude of advertisements of bookmakers and online casinos. Unlike slot machines and jogo do bicho, online gambling websites are not illegal in Brazil. However, they are also not regulated.”
“Without a regulation the State ends up losing a source of revenue collection, harming national businessmen interested in operating these services. The player can bet, but the service provider cannot be based in Brazil,” concludes Luiz Felipe Maia, founding partner of the law firm Franco, Yoshiyasu, Maia, Simões and D'Alessio Advogados.
Source: GMB
