Olympics: law signed by Lula exempts taxes on prizes received by Olympic medalists such as Rebeca Andrade, Bia Souza and Rayssa Leal

Behind the scenes of Brazilian Olympic sport, a new victory has just been won, and this time it wasn't on the courts or arenas. A provisional measure, signed by President Luiz Inácio Lula da Silva, could transform the way medal-winning athletes are rewarded in the country.

Without fanfare, the MP published in the Official Gazette of the Union this Thursday (08) exempts Olympic and Paralympic medalists from paying Income Tax on awards received in Paris 2024 Olympics.

This decision could be a watershed for sports icons such as Rebeca Andrade, Beatriz Souza and Rayssa Leal, whose achievements are not only gold, silver and bronze, but now also tax-free.

The measure specifically exempts cash amounts paid by the Brazilian Olympic Committee (WHAT B) and by the National Paralympic Committee (CPB), reflecting a new government approach to athlete recognition.

Until then, medals, trophies and other symbolic objects received in competitions abroad were already free from federal taxes, but cash prizes were considered taxable income, subject to taxation of up to 27,5%.

With the new rule, all cash prizes received by athletes at the current edition of the Paris Olympic Games are free from taxation. This includes both awards already received before the publication of the MP and future ones.

On Wednesday (7), the IRS had already signaled that, without a change in legislation, it could not waive the collection of this tax. The entity explained that, for taxation purposes, athletes were treated like any other worker who exceeded the income tax exemption range, currently corresponding to two minimum wages.

With the signature of the MP, Lula, together with the executive secretary of the Ministry of Finance, Dario Durigan, and the Minister of Sports, André Fufuca, guaranteed the immediate implementation of the new rule.

Understand the change

Previously, medals and trophies received in competitions did not have taxable value in Brazil. These physical prizes, considered commemorative, have always been exempt from taxes in accordance with the normative instructions of the Federal Revenue Service and article 38 of Law 11.488 of 2007.

However, the same did not apply to cash prizes, which needed to be declared in Income Tax, with a rate of up to 27,5%, applied directly at source.

To illustrate, before the new measure, Rebeca Andrade, who won three medals in individual competitions (one gold and two silver), would have to pay R$227.150 in taxes about his prize of R$826 thousand. Now, she and other athletes such as judoka Beatriz Souza and skateboarder Rayssa Leal will be able to receive their full prizes, without any deduction.

The impact of the measure

The provisional measure is valid for up to 120 days and must be approved by the National Congress to become permanent law. During this period, the text may undergo changes by deputies and senators, but any modification will require presidential sanction.

For athletes who have already competed or who still will take the podium in Paris, this exemption represents not only financial relief, but also recognition for the effort and dedication that make Brazil stand out on the world sporting scene.

Do you believe that Brazil is finally giving due value to its athletes or is this measure just a temporary step that may not survive political discussions?