The National Congress overturned, in a joint session, this Thursday (9), vetoes by President Luiz Inácio Lula da Silva (PT) on sections of a law that allowed exemption from Income Tax for prizes in sports betting and online casinos.
With the decision, The rule that exempts earnings of up to R$2,259 per month from taxation will come into force (first range of the IR table).
The result in the Senate was 64 votes to 8 for the rejection of the presidential veto. In the Chamber, the score was 417 to 64 for the overthrow.
According to government leaders, the reestablishment of the measure, vetoed by Lula last December, should reduce revenue from taxation of online betting.
The law that regulates the virtual betting market, the so-called bets, was sanctioned by Lula in December.
The text taxes companies and bettors, in addition to establishing rules for the exploitation of betting and for the distribution of resources collected by the government.
By law, Income Tax will be charged, at a rate of 15%, on bettor prizes. Companies will be taxed 12% of the amount collected after deductions.
In this Thursday’s vote, Congress resumed the section that provides that Income Tax will only be charged once a year on bettors. It also reestablished a measure that determines that the tax will only be charged on the so-called net prize, after discounting losses and bet amounts.
The exemption, taken up by congressmen, will be valid for prizes that are below the exempt range in the IR exemption table (currently R$2,112).
The veto had been recommended by the Ministry of Finance. In the justification sent to Congress, the government stated that maintaining this section would violate “tax equality”.
Understand the project approved by Congress that regulates online sports betting
For an online betting company to operate in the country, will have to pay R$30 million to obtain the operating license.
Only companies established in accordance with Brazilian legislation, with headquarters and administration in the national territory, may operate sports betting.
According to the law, minors under 18 will not be able to place bets. Also participation of:
- owners and people working in betting companies
- public agents linked to the regulation and supervision of the betting market
- people who have access to the computerized betting system
- people who have or may have influence over the outcome of games, such as sports officials, referees and athletes
- people diagnosed with ludopathy, which is a compulsion to gamble
The text also creates rules for the operation of online games and casinos, an excerpt that was included during the vote in the Chamber of Deputies.
The legislation also defines rules for advertising and advertising on betting sites. And it establishes infractions and punishments for non-compliance with the rules provided for by law.
According to the text, the division of resources collected by the government will be as follows:
- 36% for the Ministry of Sports and sports committees;
- 28% for Tourism;
- 13.6% for Public safety;
- 10% for the Ministry of Education;
- 10% for social security;
- 1% to health
- 0.5% for civil society entities
- 0.5% to the Fund for the Equipment and Operationalization of Core Activities of the Federal Police (Funapol);
- 0.4% for the Brazilian Industrial Development Agency.
Tags: Congress overturns veto resumes income tax exemption sports betting prizes R2259 month Policy
