Main points:
Limited Partnerships (SCP):
- Ostensive partners, even if they are individuals, are considered legal entities for tax purposes
- They must register with the CNPJ and comply with additional obligations.
Winnings from bets in Brazil:
- Subject to taxation at source according to the monthly progressive table.
- Amount is paid in advance in the IRPF Annual Adjustment Declaration.
Winnings from bets abroad:
- Payment via carnê-leão (income tax that must be paid monthly, on a mandatory basis, by individuals residing in Brazil) in the month of receipt, using the monthly progressive table.
- The tax paid is considered an advance for the Annual Adjustment Declaration.
- Taxation is levied on the total prizes obtained in the month, without deducting expenses or offsetting losses.
Net prizes in fixed-odds lotteries:
- Amounts exceeding the first bracket of the IRPF annual table are taxed at 15%.
- Payment must be made by the last business day of the month following the calculation.
Normative:
CONSULTATION SOLUTION No. 1, DATED JANUARY 15, 2025
Subject: Additional Obligations
PARTNERS IN PARTICIPATION CONTENT. SCP. INDIVIDUAL OBJECTIVE PARTNER. EQUALIZATION TO LEGAL ENTITY. ANCESSORY OBLIGATIONS.
For the purposes of federal tax legislation, the individual partner of a partnership in participation account (SCP) is considered an equivalent to a legal entity.
The individual partner of the SCP is required to register with the CNPJ and comply with the other ancillary obligations imposed on the partners of the SCP.
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CONSULTATION SOLUTION No. 2, DATED JANUARY 16, 2025
Subject: Personal Income Tax – IRPF
WINNINGS FROM ONLINE GAMES AND BETTING IN WHICH THERE IS A LINK TO PERFORMANCE EVALUATION. BENEFICIARY RESIDENT IN BRAZIL. SOURCES LOCATED IN BRAZIL.
Winnings obtained from sources located in Brazil, in games and betting in which there is an evaluation of the participants' performance in which the prizes take the form of remuneration, are subject to taxation at source, according to the monthly progressive table, as an advance in the Annual Adjustment Declaration.
WINNINGS FROM ONLINE GAMES AND BETTING. BENEFICIARY RESIDENT IN BRAZIL. SOURCES LOCATED ABROAD.
Prizes from bets and games made abroad, including online, are subject to mandatory monthly collection (carnê-leão) in the month of receipt and, in this case: the calculation is made using the current monthly progressive table and payment must be made by the last business day of the following month; the value of the prize must be included in the income tax calculation basis in the Annual Adjustment Declaration (DAA) of the individual; the tax paid as a carnê-leão is considered an advance on the amount to be calculated in this declaration; and taxation is levied on all prizes obtained in the month, with no legal provision for the deduction of expenses necessary for placing bets or compensation between gains and losses occurred in the same period.
NET PRIZES WON FROM FIXED-ODD LOTTERY BETS.
Net prizes obtained from bets on the fixed-odds lottery, which exceed the value of the first bracket of the annual progressive IRPF table, will be taxed by the Personal Income Tax (IRPF) at a rate of 15% (fifteen percent), in accordance with specific legislation.
The tax will be calculated annually and paid by the last business day of the month following the calculation.
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CONSULTATION SOLUTION PARTIALLY LINKED TO CONSULTATION SOLUTION No. 61 – Cosit, DATED MARCH 29, 2018.
CONSULTATION. ABSENCE OF REGULATORY REQUIREMENTS. PARTIAL INEFFICIENCY.
The consultation regarding the interpretation of tax legislation is ineffective when the consultant does not indicate the provision of the tax legislation whose application there is doubt, as well as does not provide elements necessary for the solution.
Legal Provisions: Decree No. 70,235, of March 6, 1972, arts. 46 and 52, item I; RFB Normative Instruction No. 2,058, of December 9, 2021, arts. 1, 13, items I and II, and 27, items I and II.
Source: GMB
