The General Coordination of Taxation of the Special Secretariat of the Federal Revenue of Brazil, led by Rodrigo Augusto Verly de Oliveira, published in the Official Gazette of the Union (DOU) the opinion on consultations related to accessory obligations, income tax taxation on earnings obtained from online betting in Brazil or abroad, among other related matters.
Main points:
* Joint Participation Accounts (SCP):
-Ostensible partners, even being individuals, are equated to legal entities for tax purposes
-Must register with CNPJ and comply with accessory obligations.
* Earnings from bets in Brazil:
-Subject to withholding tax by the progressive monthly table.
-Value is anticipated in the Annual Adjustment Declaration of IRPF.
* Earnings from bets abroad:
-Collection via carnê-leão in the month of receipt, using the progressive monthly table.
-The tax paid is considered an anticipation for the Annual Adjustment Declaration.
-Taxation applies to the total of the prizes obtained in the month, without deduction of expenses or compensation for losses.
* Net prizes in fixed quota lotteries:
-Values exceeding the first bracket of the annual IRPF table are taxed at 15%.
-Payment must occur by the last business day of the month following the assessment.
Regulation:
CONSULTATION SOLUTION NO. 1, OF JANUARY 15, 2025
Subject: Accessory Obligations
JOINT PARTICIPATION ACCOUNT. SCP. OSTENSIBLE PARTNER INDIVIDUAL. EQUIVALENCE TO LEGAL ENTITY. ACCESSORY OBLIGATIONS.
For the purposes of federal tax legislation, the ostensible individual partner of a joint participation account (SCP) is equated to a legal entity.
The ostensible individual partner of the SCP is required to register with the CNPJ and to comply with the other accessory obligations imposed on ostensible partners of SCP.
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CONSULTATION SOLUTION NO. 2, OF JANUARY 16, 2025
Subject: Personal Income Tax – IRPF
EARNINGS IN ONLINE GAMES AND BETS WHERE THERE IS A LINK TO PERFORMANCE EVALUATION. BENEFICIARY RESIDENT IN BRAZIL. SOURCES LOCATED IN BRAZIL.
The earnings obtained from sources located in Brazil, in games and bets where there is an evaluation of the performance of the participants in which the prizes take on the aspect of remuneration, are subject to withholding tax, according to the progressive monthly table, as an anticipation in the Annual Adjustment Declaration.
EARNINGS IN ONLINE GAMES AND BETS. BENEFICIARY RESIDENT IN BRAZIL. SOURCES LOCATED ABROAD.
The prizes from bets and games conducted abroad, including online, are subject to mandatory monthly collection (carnê-leão) in the month of receipt and, in this case: the calculation is made using the current progressive monthly table and payment must occur by the last business day of the month following; the prize value must be included in the income tax base calculation in the Annual Adjustment Declaration (DAA) of the individual; the tax paid as carnê-leão is considered an anticipation of the amount to be determined in this declaration; and taxation applies to the entirety of the prizes obtained in the month, without legal provision for the deduction of necessary expenses for the realization of the bets or compensation between gains and losses occurred in the same period.
NET PRIZES OBTAINED IN FIXED QUOTA LOTTERY BETS.
The net prizes obtained in fixed quota lottery bets, which exceed the value of the first bracket of the progressive annual IRPF table, will be taxed by the Personal Income Tax (IRPF) at a rate of 15% (fifteen percent), under the terms of specific legislation.
The tax will be determined annually and paid by the last business day of the month following the assessment.
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PARTIALLY LINKED CONSULTATION SOLUTION TO CONSULTATION SOLUTION NO. 61 – Cosit, OF MARCH 29, 2018.
CONSULTATION. ABSENCE OF NORMATIVE REQUIREMENTS. PARTIAL INEFFECTIVENESS.
The consultation on the interpretation of tax legislation is ineffective when the consultant does not indicate the provision of the tax legislation whose application is in doubt, as well as does not bring elements necessary for the solution.
Legal Provisions: Decree No. 70.235, of March 6, 1972, arts. 46 and 52, subsection I; Normative Instruction RFB No. 2.058, of December 9, 2021, arts. 1, 13, subsections I and II, and 27, subsections I and II.
Source: GMB
