4 insights on Brazil’s betting tax maze
The complexities of Brazil’s betting tax laws took centre stage at BiS SiGMA Americas 2025 today during a panel discussion at the Itaim Stage in São Paulo. The panel, moderated by Ana Helena Karnas Hoefel Pamplona, Founding Partner of AHP Law Firm, provided crucial insights into the challenges of tax rates, double taxation, and the impact of these policies on Brazil’s burgeoning betting market. With expert speakers Alexandre José de Paula Lima, Legal and Accounting Director at Gest Plan, and Juan Manuel Calonge Mendez, Partner at VPN Lawyers, the session offered a comprehensive look at the tax landscape affecting both established and emerging betting companies in Brazil.
The panel tackled four critical issues
- Taxation and Business Costs: Juan Manuel Calonge Mendez highlighted the significant tax burden on Brazilian companies, focusing on the Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL). These taxes, levied on business profits, create a hefty cost for betting companies. “The costs can be overwhelming, but companies need to understand the systems available, such as tax incentives for companies based in the Northeast region,” explained Mendez.
- Navigating Tax Deductions: Alexandre José de Paula Lima discussed the complexities of marketing investments, particularly in sports sponsorships. “While companies often seek to classify marketing expenses as deductible, not all expenses meet the legal criteria,” Lima noted, urging businesses to ensure compliance to avoid scrutiny from tax authorities.
- Retroactive Taxation: The panel also addressed concerns around retroactive taxation for companies that operated in the grey area before Brazil’s betting regulations were established. Both speakers agreed that while businesses might not have been aware of their full tax obligations, the legal implications are significant. “Companies could face penalties if their operations are deemed to have avoided taxes,” Mendez warned.
- ISS Tax Challenges Across Municipalities: The session concluded with a discussion on the Service Tax (ISS), particularly in São Paulo, which has set a clear tax base for betting companies. However, some municipalities have followed suit with lower rates, raising concerns about competition and potential legal challenges. “This could lead to a fragmented tax environment, complicating nationwide operations,” said Lima.
As Brazil moves toward clearer betting regulations, the conversation continues to evolve. For now, stakeholders are left navigating a complex web of taxation laws that could significantly impact market growth and sustainability. For a deeper dive into the discussions from BiS SiGMA Americas 2025, explore the full event agenda and stay informed of the key talks on market trends. Follow SiGMA Group’s worldwide summits for ongoing insights into global gaming and tax regulations shaping the future of iGaming.
