Senate Committee approves increased tax on betting and fintechs

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Senate Committee approves increased tax on betting and fintechs

The Economic Affairs Committee (CAE) of the Brazilian Senate approved on Tuesday the report by Senator Eduardo Braga on the bill that progressively raises taxes applied to betting platforms (bets) and fintechs. The proposal received broad support: 21 votes in favor and only one against, so it will now proceed to the Chamber of Deputies.

The bill, authored by Senator Renan Calheiros, was processed in a final manner, which means it did not need to go through the Senate Plenary before advancing to the next legislative stage.

Bets: GGR increase will be gradual until 2028

The approved text incorporated significant changes compared to the original version, which proposed to immediately double the Gross Gaming Revenue (GGR) rate from 12% to 24%.

Braga’s report softened the impact by establishing a phased schedule:

This will allow operators to progressively adapt to the new tax scheme, amid a market already facing pressure from rising costs and increasing competition.

Fintechs: also phased increase

The bill also adjusts taxation on fintechs and payment institutions through the Social Contribution on Net Profit (CSLL), which will change:

In the case of capitalization companies and credit, financing, and investment entities, rates will rise from 15% to 17.5% until 2027 and reach 20% in 2028. Traditional banks and cooperatives will not be affected by these changes.

Estimated fiscal impact

The federal government expects the tax reform to generate 18 billion reais over the next three years:

Part of this revenue will offset the losses that states and municipalities will incur due to the exemption from Income Tax for those earning up to R$ 5,000 monthly.

Tags: Brasil, Brazil betting taxes, Brazil gaming tax