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Brazil's tax authority clarifies rules on betting winnings tax

Brazil's Federal Revenue Service has formalized how bettors must calculate and pay income tax on net betting winnings, confirming an annual per-category system.

1 min read
Receita Federal
Key Points
Tax Ruling 157/2026 confirms net betting winnings are subject to definitive income tax
Gains and losses can only be offset within the same betting category
Taxpayers, not betting platforms, are responsible for calculating and paying the tax

Brazil's General Coordination of Taxation (Cosit) has published Tax Ruling 157/2026. 

This consolidates the Federal Revenue Service's position on income tax owed on net winnings from fixed-odds betting and fantasy sports. 

Signed by Coordinator-General Rodrigo Augusto Verly de Oliveira, the ruling confirms a model the tax authority now backed by the weight of a binding administrative ruling.

Under the ruling, net winnings are subject to exclusive, definitive personal income tax, meaning they aren't combined with other income in a taxpayer's annual return, similar to how fixed-income investments are treated. 

Three rules govern the calculation


Taxpayers assess results once a year, covering all bets placed across all operators in the prior calendar year, rather than event by event; calculations are done separately for each of the three betting categories defined by law, real sporting events, virtual online games, and fantasy sports; and losses in one category cannot offset gains in another.

The final net winnings figure is simply the sum of positive results across each category. Taxpayers are responsible for calculating and paying the tax themselves, using an app provided by the Federal Revenue Service in March, with payment due by the end of April.

The law's original text set a 15% rate on net winnings above the income tax exemption threshold, with annual, per-category calculation, but the Secretariat of Prizes and Betting recommended vetoing the relevant paragraphs over concerns about revenue loss, a recommendation the Executive accepted in December 2023. 

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