Brazil updates tax rules on gambling winnings, enforcing 15% deduction

Brazil’s Federal Revenue Service, Receita Federal, has updated Personal Income Tax (IRPF) guidelines to regulate taxation on online gambling and sports betting winnings. The revisions align with the Bets market, which launched on January 1, 2025.

Licensed operators must deduct a 15% tax at source on winnings exceeding BRL 2,824, treating it as an advance payment toward annual tax declarations. Winnings from unlicensed international operators must be self-reported through Carnê-Leão, with taxes paid by the last business day of the following month.

Fixed-odds lottery winnings above BRL 28,559.70 are subject to a 15% flat tax, calculated annually. Law No. 14,790/2023 mandates the taxation framework, enforced by President Luiz Inácio Lula da Silva.

Legal expert Ana Pamplona noted that the revocation of key presidential vetoes by Congress has created regulatory ambiguities. Further instructions are expected, particularly regarding foreign lotteries and the uniform application of the 15% tax rate.

Receita Federal continues to refine policies to ensure compliance, transparency, and revenue collection in Brazil’s growing gambling sector.