Brazil retroactive betting tax off the cards after withdrawal by chamber of deputies
Provisional Measure 1,303/2025 was withdrawn from the Chamber of Deputies.
Brazil.- The Chamber of Deputies has withdrawn from the agenda a provisional measure that had been edited as an alternative to the proposed increase in the Tax on Financial Transactions – IOF. With the withdrawal, which received 251 votes in favor and 193 against, Provisional Measure 1,303/2025 cannot be voted on by the Senate and loses its validity.
The bill needed to be approved by the Chamber of Deputies and the Senate by the end of the day today. To compensate for the Chamber’s decision, the government has announced the possibility of budget cuts.
The bill’s rapporteur, representative Carlos Zarattini (Workers’ Party-SP), had made several changes to the text, removing a proposal to increase the tax rate on online sports betting revenue from 12 to 18 per cent.
The amended text would also have created what was dubbed the Bets Zero Litigation programme, which would have allowed the repatriation of funds from overseas arising from sports betting operations that were not declared, or declared with omissions or inaccuracies, before the regulation of the market.
Amounts obtained up to December 31, 2024, could have been regularised, with interested parties to have been given 90 days from the law’s entry into force to voluntarily declare funds. A 15 per cent tax rate and a 15 per cent fine would have been levied for failure to declare.
The measure would also have reinforced measures against illegal betting through the blocking and accelerated deletion of unauthorised websites and content and the monitoring of financial transactions related to unregulated betting operations. The joint committee of the National Congress had approved the measure with 13 votes in favour and 12 against.
