Brazil’s Economic Affairs Committee (CAE) has approved a bill that raises taxation on fintechs and online betting companies, marking a significant step in the country’s fiscal restructuring and regulatory tightening for the digital finance and betting ecosystem.
The bill, PL 5.473/2025, was approved by 21 votes to one and maintains the same text presented the week prior. In addition to increasing taxes, the proposal introduces a special tax regularization program for low-income individuals, aiming to ease financial burdens for households while supporting federal revenue.
Under the new measure, online betting companies will see their tax rate rise from the current 12% to 18% by 2028, following a gradual progression. The taxable base will remain defined as the total amount wagered, minus the prizes paid to winning bettors.
For fintechs, the bill proposes raising the CSLL (Social Contribution on Net Profit) from 9% to 12% in 2026, reaching 15% by 2028. Companies already subject to a 15% CSLL—such as traditional financial institutions—will see this rate increase to 17.5% in 2026 and reach 20% in 2028. According to the bill’s rapporteur, Senator Eduardo Braga (MDB-AM), the change seeks to ensure fairness across the financial sector.
“The 20% rate, once applied only to banks, will now extend to credit, financing, and investment companies. This measure reinforces fiscal sustainability and ensures equal treatment among institutions supervised by the Central Bank,” Braga explained.
The adjustment also aims to compensate for the recent approval of income tax exemption for individuals earning up to R$ 5,000, sanctioned by President Luiz Inácio Lula da Silva last week.
Revisions and Government Position
During the session, Senator Braga removed several proposed changes related to personal income tax (IRPF) after the Ministry of Finance expressed concerns about inconsistencies with recently enacted legislation. Despite this, government leader Jaques Wagner encouraged maintaining the previous version of the bill to honor an internal parliamentary agreement.
Stronger Measures Against Money Laundering
The proposal includes new mechanisms to prevent the use of fintechs and betting platforms for money laundering. These measures introduce stricter criteria for licensing betting operators and grant the Ministry of Finance the authority to deny licenses when concerns arise regarding the integrity of owners or administrators.
Additionally, the bill sets deadlines for removing illegal online betting pages and imposes administrative sanctions, including fines up to R$ 50,000 per irregular operation and temporary suspension of services.
Tax Relief Program for Low-Income Individuals
PL 5.473/2025 also establishes the Pert-Baixa Renda program, allowing low-income taxpayers—those earning up to R$ 7,350 per month or R$ 88,200 annually in 2024—to renegotiate tax debts within a 90-day period after the law’s publication.
International Residents and Dividend Remittances
The bill further allows overseas residents to request reimbursement of taxes withheld beyond legal limits on income derived from dividends and profit remittances, with a five-year window to submit such requests.
