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Behind the Scenes of Brazilian Olympic Sports, a New Victory Has Just Been Achieved, and This Time It Was Not on the Courts or Arenas. A Provisional Measure Signed by President Luiz Inácio Lula da Silva Could Change the Way Medal-Winning Athletes Are Rewarded in the Country.
Quietly, the MP published in the Official Gazette of the Union this Thursday (08) exempts Olympic and Paralympic medalists from paying Income Tax on the awards received at the 2024 Paris Olympics.
This decision could be a turning point for sports icons like Rebeca Andrade, Beatriz Souza, and Rayssa Leal, whose achievements are not only in gold, silver, and bronze but now also free from taxes.
The measure specifically exempts cash awards paid by the Brazilian Olympic Committee (COB) and the National Paralympic Committee (CPB), reflecting a new approach by the government towards recognizing athletes.
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Until now, medals, trophies, and other symbolic objects received in competitions abroad were already exempt from federal taxes, but cash awards were considered taxable income, subject to a tax rate of up to 27.5%.
With the new rule, all cash awards received by athletes in the current edition of the Paris Olympic Games are tax-exempt. This includes both awards already received before the publication of the MP and future ones.
On Wednesday (7), the Federal Revenue had already indicated that, without a change in legislation, it could not waive the collection of this tax. The entity explained that, for tax purposes, athletes were treated like any other worker who exceeded the income tax exemption threshold, currently equivalent to two minimum wages.
With the signing of the MP, Lula, along with the Executive Secretary of the Ministry of Finance, Dario Durigan, and the Minister of Sports, André Fufuca, ensured 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 awards, considered commemorative, have always been exempt from taxes according to the federal revenue normative instruction and Article 38 of Law 11,488 of 2007.
However, the same did not apply to cash awards, which needed to be declared on the Income Tax, with a rate of up to 27.5%, applied directly at the source.
To illustrate, before the new measure, Rebeca Andrade, who won three medals in individual competitions (one gold and two silvers), would have to pay R$ 227,150 in taxes on her award of R$ 826,000. Now, she and other athletes such as judoka Beatriz Souza and skateboarder Rayssa Leal will be able to receive their full awards, without any deductions.
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 a 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 will still land on the podium in Paris, this exemption represents not only financial relief but also recognition for the effort and dedication that put Brazil in the spotlight on the world sports 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?
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