The Brazilian Federal Revenue Service (RFB) announced a significant change in Normative Instruction on Online Betting RFB No. 2,005, of January 29, 2021. The amendment, published in Normative Instruction RFB No. 2,188, of April 29, 2024, concerns the “social contribution incident on the lottery modality called fixed-odds sports betting.”
In other words, this change has direct implications for bettors and the sports betting market as a whole. Let’s better understand what this means.
How Normative Instruction on Online Betting Change Directly Affects the Sports Betting Market
The social contribution is a tax that applies to the lottery modality called “fixed-odds betting.” Thus, this modality is regulated by item IV-A of § 1º-A of article 30 of Law No. 13,756, of December 12, 2018.
Therefore, the contribution is calculated monthly and must be reported in the Federal Tax Debts and Credits Statement (DCTF), under the Social Contributions group.
The payment of the social contribution must be made by the 20th day of the month following the calculation. Therefore, payment is made through the Document for Federal Revenue Collection (Darf), with revenue code 9197.
If there is no banking business on the 20th, the payment deadline is postponed to the immediately subsequent business day.
The inclusion of the social contribution in the DCTF represents an important change for the sports betting market. It implies greater transparency and control over betting operations, which can contribute to the sector’s security and reliability.
Moreover, the change can also impact tax revenue, as the social contribution is a source of revenue for the government.
The new Normative Instruction comes into effect on the date of its publication in the Official Gazette of the Union. Therefore, it is important for bettors and companies in the sector to be aware of these changes and comply with the new rules.
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Originaly posted by igamingbrazil.com by Paulo Cardoso
