The provisional measure provides for the taxation of currently exempt investment funds, such as letters of credit and real estate funds, which will now pay a 5% rate on their income. It also includes, among other topics, specific rules for the taxation of virtual assets, stock market transactions, asset loans, and foreign investors, and increases the taxation on fixed-odds bets from 12% to 18% on the GGR.
The measure was submitted to the National Congress in June to compensate for the repeal of the increase in the Financial Transactions Tax (IOF).
The joint committee is chaired by Senator Renan Calheiros (MDB-AL) and has Congressman Carlos Zarattini (PT-SP) as its rapporteur. It has four public hearings in August to address the various topics of Provisional Measure 1.303. After the hearing with Haddad, the committee will vote on its work plan and some requests.
With the tax increase, sports betting and online gaming companies will face a tax burden exceeding 55%, which industry organizations say is unbearable. The associations claim that some companies may abandon operations in Brazil, and others, still awaiting authorization from the Secretariat of Prizes and Betting (SPA), may lose their licenses.
The biggest risk, according to the organizations, is the increased presence of illegal platforms, which do not pay taxes and may offer more advantageous odds to players.
How to participate
The event will be interactive: citizens can submit questions and comments by calling the Senate Ombudsman's Office (0800 061 2211) or through the e-Citizenship Portal, which can be read and answered by senators and panelists live.
Source: GMB
