Legislation

What are the new rules established by the Brazilian Ministry of Finance for calculating the GGR?

Thursday 06 de February 2025 / 12:00

⏱ 1 min read

(Brasilia).- Last Friday 31 January, the Ministry of Finance's (MF) Department of Prizes and Betting published rules for calculating the Gross Gaming Revenue (GGR), which is the revenue from betting minus the prizes paid to the winners and the Income Tax deducted from the prizes.

What are the new rules established by the Brazilian Ministry of Finance for calculating the GGR?

The GGR is the basis for calculating all the social allocations set by Law 14.790/23 and also for collecting taxes on this economic activity (PIS, Cofins and ISS). 

The GGR rules for non-withdrawable financial rewards on fixed-odds bets can be found in SPA MF Technical Note 299, available on the Ministry of Finance website.

These rewards, permitted by the fixed-odds betting regulations, are used by betting operating companies to build customer loyalty. 

Although they are sometimes referred to generically as bonuses, they are different from entry bonuses, which are prohibited by Law 14.790 as a way of attracting new customers.

Withdrawable financial rewards are not included in the GGR calculation base, unless the benefits are used by punters to place bets. As the regulated fixed-odds betting market began on 1 January and the tax base, as well as its collection for the National Treasury, is monthly, the Technical Note aimed to clarify how to include this type of reward.

Categoría:Legislation

Tags: Sin tags

País: Brazil

Región: South America

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