Government To Tax Video Games To Offset Correction Of Income Tax Table

The Minister of Finance, Fernando Haddad, Proposes a Solution to Compensate for the Loss of Revenue with the Increase in the Income Tax Exemption Threshold: The Taxation of Electronic Games. 

During the UOL Interview on Monday (02/27), Haddad revealed that the government will regulate electronic games online, generating a gain “in the order of billions.” Lula has already given the green light for the regulation project that will be sent by the Finance Ministry to the Civil House later this March. “These games do not pay taxes and take a fortune of money out of the country,” said Haddad.

From now on, anyone deciding to enter the world of electronic games online will need to prepare to pay taxes. Thus, the taxation of games will be another way of financing for the country, putting an end to the famous expression: “Games worldwide are taxed.”

The Brazilian government announced the taxation of betting sites with a fixed quota on games organized by confederations, federations, or sports leagues. This measure aims to tax the earnings of bettors. For example, if someone invests R$ 20 in two quotas for a football game by CBF (Brazilian Football Confederation) and the team wins, they will receive R$ 100.

This charge does not apply to casinos, lotteries, or video games. Now, it is necessary to map the types of sites that offer the highest risk of tax evasion so that they can be better addressed by the Executive and Brazilian Congress.

A new Income Tax table was announced by President Lula. The monthly income limit, which was previously R$ 1,903.98, will now be R$ 2,640. The change will take effect in the 2024 declaration. However, he emphasized that increasing the inflation target is not a goal of the current government.

Finally, a program to assist indebted individuals is ready and awaiting Lula’s approval during a meeting next Monday (6). The government hopes that this measure can ease debts and promote a stronger economic recovery.

Income Tax: Finance Ministry Finalizes Correction Proposal 

Via TV Brasil 

A New Income Tax Table Is Coming, but It Will Only Be Valid for Declarations and Calculations Starting in 2024. 

President Lula announced the increase of the exemption threshold to R$ 2,640, which will replace the current limit of R$ 1,903.98 for taxpayers who do not need to pay income tax.

The provisional measure for updating the table will be made based on the adjustment of the minimum wage, which will increase to R$ 1,320 on May 1. However, the data related to this year’s Income Tax declaration refers to the earnings received in 2022.

According to tax auditor Mário Dehon, this change represents a great opportunity for Brazilians who want to save and obtain financial benefits at the time of the Income Tax declaration. “It is an important and special moment for those who wish to save money,” he stated.

The Brazilian government announced that starting this May, taxpayers with income up to two minimum wages will no longer need to pay Income Tax. This measure, promised during the electoral campaign by the leftist party, aims to gradually raise the exemption limit to R$ 5,000.

According to the Federal Revenue Service, the slightly delayed start and the longer interval than in previous years will allow all taxpayers to benefit from the pre-filled declaration from the outset. The 2023 Income Tax program will be available on the Revenue Service website starting March 15, and it is expected to receive between 38.5 million and 39.5 million taxpayer declarations.

The news has brought great relief to 13.7 million Brazilian taxpayers who will no longer have deductions in their paychecks and perhaps even a larger refund in the 2024 declaration. Thus, with renewed hope, Brazilians can finally see the light at the end of the tunnel.