Brazil weighs up retroactive tax collection from operators
The Brazilian federal government is reported to be considering retroactively taxing sports betting companies that operate in Brazil, potentially raising BRL12.6 billion in taxes.
According to sources speaking to Metrópoles, a working group formed by the Federal Revenue Service and the Secretariat of Prizes and Bets at the Ministry of Finance is assessing the proposal.
The finance ministry confirmed its analysis and shared that it would guide the Federal Revenue’s actions, but it did not provide further details due to fiscal intelligence confidentiality.
Officials also mention payments could be made in installments, with 135 betting companies potentially subject to the charges. Operators are already taxed 12% after the fixed-odds betting market became regulated in 2024.
Answering a question from Brazilian Sen. Soraya Thronicke earlier in the year, Robinson Barreirinhas, Secretary of Revenue, said, “If there was a material presence here in Brazil and profits were made, income tax would have to be paid; if there was revenue, PIS-COFINS would have to be paid.”
Barreirinhas noted that Treasury-authorized firms received a “vote of confidence” but could still be audited for past activity. Minister of Finance Fernando Haddad has criticized bookmakers, claiming over BRL40 billion in taxes went unpaid before regulation.
A provisional measure before Congress would raise the betting tax rate to 18%. The government projects additional revenue of BRL284.94 million in 2025 and BRL$1.7 billion annually in 2026 and 2027.
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