Minas Gerais State, Belo Horizonte - The city hall recently submitted a bill to the city council proposing tax incentives for online gambling companies to attract more companies to settle locally and promote the development of the digital economy.
The new bill suggests reducing the ISSQN tax rate for the service sector from the current 5% to 2%, and making corresponding adjustments to the city property tax (IPTU). This move, signed by Mayor Álvaro Damião, aims to enhance the city's competitiveness in the booming online gambling sector.
The city's finance department expects that despite the reduced tax rate, this policy could still bring in additional tax revenue of up to 2.8 million reais (about $530,000) in 2025, due to more companies settling and complying with tax regulations.
The proposal is still under review by several committees of the city council and must ultimately be passed by a full vote, with the voting date yet to be determined.
In recent years, Belo Horizonte has gradually emerged in the national gambling market, and the city government hopes to use policy tools to turn it into a hub for emerging gambling technology companies.
