The Municipal Finance Department of the City of São Paulo published, in the municipality’s Official Gazette, Normative Opinion SF No. 01/2024, which directly impacts the fixed-odd betting lottery sector, popularly known as “bets”.
Therefore, this opinion, derived from the wording given by Federal Law 14,790/23, aims to define rules for operating the service and determine the sharing of revenue.
One of the main contributions of this opinion is to offer legal certainty to providers in this segment. Thus, it clearly defines which portions of revenue make up the calculation basis for the Tax on Services of Any Nature (ISS).
Decision places São Paulo as the main betting hub
This definition avoids litigation, assessments and administrative and judicial processes, providing stability and predictability in relations between companies in the sector and the São Paulo tax authorities.
Therefore, with this measure, São Paulo is also strengthened as the main hub for attracting high-technology companies in Brazil and Latin America. This will generate jobs, income and economic dynamism.
Furthermore, an increase in tax revenue is expected with the establishment of companies in the sector in the municipality. Thus, another benefit already granted by the City of São Paulo was the setting of the ISSQN rate at 2% for the betting segment.
This rate, at the lower limit permitted by national tax legislation, contributes to reducing tax costs. This is another positive point for the city, which will certainly attract more companies in the sports betting sector.
Therefore, the Normative Opinion also clarifies that they are not taxable by ISSQN:
- transfers relating to the payment of premiums
- income tax on prizes
Furthermore, the percentage of 12% of the revenue from the fixed-quota lottery, physical or virtual, with specific destination, is not included in the tax calculation base.