“Taxpayers have less than a month to file their Income Tax returns. Those who have won prizes in lotteries, bingo, or online betting also need to report them to the Federal Revenue.
In Brazil, all types of prizes mentioned above are considered taxable income. Therefore, they must all be declared, as explained by Ana Klaudia Filadoro, a tax lawyer at Konda Law International.

Filadoro further explains that the tax rate to be paid depends on the amount received. “Regarding gains from online betting sites, there is no withholding tax, and it is the responsibility of the winner to declare the amount received in the individual income tax (IRPF).”

In the case of lottery and bingo prize winners, income tax is withheld at the source by the institution responsible for the game, with the winner receiving the net amount.

According to the lawyer, the tax rate varies according to the prize amount and can reach up to 30% of the received amount.

“The omission of income or declaring lower amounts than actually received can lead the taxpayer to be audited and face possible sanctions, such as interest and fines,” warns Filadoro.