Earnings from Sports Betting? Understand the Federal Revenue Service's guidelines on Personal Income Tax.

Since the article ' Sports betting: see how to declare winnings from bets in the 2025 Income Tax ' published by Infomoney and reproduced by BNLData contained some inaccuracies in the guidelines on how to declare winnings from bets in the 2025 Income Tax, lawyer Luiz Felipe Maia from Maia Yoshiyasu Advogados clarifies the topic in a didactic way.

Earnings from online betting by companies located in Brazil

If the winnings came from national platforms authorized to operate fixed-odds lotteries, they are taxed according to the annual progressive income tax table.

Net prizes (prizes received – bets placed in the reference year) obtained from fixed-odds lottery bets that exceed R$ 26.963,20 (the first bracket of the annual progressive income tax table) will be taxed by the Personal Income Tax (IRPF) at a rate of 15% (fifteen percent). The tax will be calculated annually and paid by the last business day of the following month.

to the counting process.

Earnings from online games and betting on foreign platforms

⇒ Calculation and Payment: The tax must be calculated based on the current monthly progressive tax table and paid by the last business day of the month following receipt of the prize.

⇒ Annual Tax Return: The total value of the prizes is included in the calculation basis for Individual Income Tax (IRPF) reported in the Annual Tax Return.

⇒ Advance Tax Payment: The amount paid monthly through the Carnê-Leão (Brazilian tax payment system for self-employed individuals) will be offset in the final calculation of the tax due in the tax return.

⇒ No Deduction of Expenses: It is not permitted to deduct amounts wagered or offset losses and gains incurred in the same period.

Prizes won from bets and games played on international platforms, including online betting, are subject to taxation via Carnê-Leão (a Brazilian tax form for self-employed individuals) and must be declared monthly.

Tax rate for fixed-odds betting winnings in Brazil

Net prizes (prizes received – bets placed in the reference year) obtained from fixed-odds lottery bets that exceed the value of the first bracket of the annual progressive income tax 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 month of calculation.

Avoid the Fine Mesh

The tax authorities cross-reference information with regulated platforms. Any discrepancy may lead to an audit.

The omission of income can be considered tax evasion, with the possibility of fines and interest on the tax owed.

(Source: Cosit Consultation Solution No. 2, dated January 16, 2025)