Brazil’s Federal Revenue Service has published new guidance governing how income tax should be withheld on commissions, brokerage fees and other remuneration paid by betting platforms.
The institute also introduced an optional self-withholding regime for operators while leaving the taxation of players untouched.
The measure applies exclusively to business-to-business transactions involving digital platforms and does not alter the 15% tax imposed on bettors’ annual net winnings under Brazil’s regulated betting framework.
Under the new rules, companies paying commissions remain responsible for withholding income tax at a rate of 1.5%. However, betting platforms can now choose to assume that obligation themselves through an optional self-withholding mechanism.
To adopt the regime, operators must notify the Federal Revenue Service through Brazil’s EFD-Reinf digital reporting system once a year. The choice remains valid for the entire period and cannot be reversed until the following cycle.
Companies that control essential elements of electronic transactions, including payment processing, pricing or delivery conditions, fall within the scope of the new rules, while internet providers, payment processors, advertising companies and price comparison services remain excluded.
Instead, the regulation deals exclusively with commissions and remuneration exchanged between companies involved in digital intermediation services. The taxation of betting prizes paid to individuals continues to follow the provisions established under previous laws.
Under those rules, players pay tax on their annual net betting winnings, calculated as the difference between total prizes received and the total amount wagered during the year.
Recently, Brazil’s Federal Revenue Service reported that tax collection from licensed operators reached BR4.5bn ($807m) between January and April 2026.
Only annual net winnings exceeding BR28,467.20 are subject to Brazil’s 15% income tax on betting prizes.
