The Supplementary Bill (PLP) No. 224/25, which regulates the reduction of tax benefits and the increase in betting taxation, was sanctioned on Friday (26/12) and published in the Official Journal of the Union (DOU) this Monday (29/12). The text provides for spending cuts, a reduction in tax benefits and an increase in taxation on betting and fintechs.
The proposal was approved this month by the Chamber of Deputies and the Federal Senate. According to Agência Câmara, one of the main points of the text is the 10% reduction in tax benefits granted by the government, which should result in a heavier tax burden for companies.
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The text is part of the package defended by the Minister of Finance, Fernando Haddad, to compensate for the reversal, in October, of the provisional measure (MP) alternative to the increase in the tax on financial operations (IOF).
Haddad estimates an increase in revenue of 20 billion reais, the amount needed to close the 2026 budget and make viable the fiscal target of a surplus of 0.25% of gross domestic product (GDP), around 34 billion reais. However, rapporteur Aguinaldo Ribeiro did not detail the total budgetary impact of the project.
The text establishes that 3% of net revenues from odds betting will be allocated directly to Social Security, maintaining the 12% provided for in the sector’s regulatory framework, approved by Congress in 2023. Betting operating companies will now keep 85% of profits, compared to 88% previously.
In the rise of CSLL, the text also affects fintechs. Taxation will be 12% until December 31, 2027 and 15% from January 1, 2028.
The government expects a relief of 1.6 billion reais.
Benefit reductions apply to the following taxes:
- Social integration program / Training program for active civil servants (PIS/Pasep) and PIS/Pasep-Import; Contribution to the Financing of Social Security (Cofins) and Cofins-Import;
- Corporate tax (IRPJ) and Social Contribution on Net Profit (CSLL);
- Import tax;
- Tax on industrialized products (IPI);
- Social security contribution of the employer, the company and the entity that corresponds to it.
President Luiz Inácio Lula da Silva (PT) vetoed the articles authorizing the revalidation of unpaid debts canceled between 2019 and 2023, including parliamentary amendments. In addition, he vetoed a provision that expanded the application of the new legal requirements to benefits of a financial and credit nature.
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