New Tax Guidelines for Sports Betting in São Paulo.
On March 18, 2024, the Municipal Finance Department of São Paulo City Hall issued Normative Opinion SF No. 01/2024, bringing important guidelines on the taxation levied on sports betting services in the city. This measure aims to provide greater clarity and legal certainty for both companies in the sector and bettors.
In general terms, SF Normative Opinion No. 01/2024 clarifies that the Services Tax (ISS) levied on the betting sector, subject to a rate of 2%, will be levied on 88% of the proceeds from fixed-odds lottery betting, after deducting the value of the prize, the income tax levied on the prize and the 12% of Gross Gaming Revenue (GGR) specifically earmarked, in accordance with current legislation.
By establishing clear criteria for taxation, the aim is to avoid litigation and provide stability in tax relations, contributing to a safer and more favorable business environment. In this way, São Paulo City Hall hopes to stimulate economic growth and job creation in the city, consolidating it as an important business hub in Brazil and Latin America.
BTLAW, through its Tax Consultancy division, has a team prepared and experienced to provide additional information on this subject. For more details, please contact us([email protected]).