The Economic Affairs Committee of Brazil's Senate is expected to approve the federal legislation on sports betting and gaming after reviewing the tax rates outlined in the framework. After successfully passing through the Economic Affairs Committee, the federal bill, which has been under development for more than four years, is only one Senate vote and the President's signature away from becoming law.
During the examination, the CAE made revisions to the tax structure of the sports betting market, reducing the tax on Gross Gaming Revenue (GGR) from 18% to 12%. Additionally, the tax rate on winnings was lowered from 30% to 15%. These adjustments were proposed by the Brazilian Ministry of Finance and supported by the Commission's rapporteur, Angelo Coronel.
The 12% tax rate imposed on licensed operators will include deductions for customer winnings and the taxes paid on player prizes. However, the value of the federal grant remains at R$30 million, as initially suggested by the Chamber of Deputies, and will have a validity period of five years. Furthermore, the mechanism for distributing the collected tax revenue has been approved.
During the examination, the CAE made revisions to the tax structure of the sports betting market, reducing the tax on Gross Gaming Revenue (GGR) from 18% to 12%. Additionally, the tax rate on winnings was lowered from 30% to 15%. These adjustments were proposed by the Brazilian Ministry of Finance and supported by the Commission's rapporteur, Angelo Coronel.
The 12% tax rate imposed on licensed operators will include deductions for customer winnings and the taxes paid on player prizes. However, the value of the federal grant remains at R$30 million, as initially suggested by the Chamber of Deputies, and will have a validity period of five years. Furthermore, the mechanism for distributing the collected tax revenue has been approved.
