Which of the three tax regimes is best for online betting companies?

Choosing the best tax regime for online betting companies

See which tax regime is most advantageous for online betting companies. We analyze Simples Nacional, Lucro Presumido and Lucro Real, highlighting the best option to optimize your tax burden.

In the dynamic world of online betting companies, choosing the right tax regime is crucial to ensuring financial sustainability and efficient compliance with tax obligations. In this article, we'll take a closer look at the three most relevant tax regimes in Brazil - Simples Nacional, Lucro Presumido and Lucro Real - and assess which one best suits the peculiarities and operations of online betting companies.

[Article:] Here's how to reduce the tax burden on online games

How important is the tax framework for online betting companies? 

Defining the correct tax framework is a vital step for any business, and in the online betting sector it's no different. The strategic choice between Simples Nacional, Lucro Presumido and Lucro Real can directly impact the company's financial health, significantly influencing tax costs and, consequently, long-term results.

Well-designed tax planning not only ensures compliance with current legislation, but can also result in substantial savings. Therefore, understanding the distinct characteristics of each tax regime is fundamental to making informed and strategic decisions.

[Article]: Online betting in Brazil taxes and regulation

Simples Nacional

Simples Nacional, created to simplify the payment of taxes by Micro Enterprises (ME) and Small Enterprises (EPP), offers nominal rates varying from 4% to 22.90%. This regime is especially advantageous for small and micro-enterprises with annual turnover of up to R$ 4.8 million.

[Article]: Tax planning for Simples Nacional companies

Characteristics of companies suitable for Simples Nacional

Limited annual turnover

Simples Nacional is aimed at companies with an annual turnover within the limits established by law. The ceiling can vary according to the company's economic activity.

Tax simplicity

Companies looking to simplify tax management and unify the payment of various taxes in a single form.

Permitted activities

The legislation defines which activities can join Simples Nacional. Some activities, especially those related to services, may have restrictions or not be covered.

Examples of companies suitable for Simples Nacional can include small businesses, local service providers, beauty salons, doctors' surgeries, among others. It's worth noting that eligibility depends on several factors, including the type of activity, annual turnover and other company-specific variables.

Presumed Profit

Presumed Profit, a simplified form of taxation, is chosen by companies with annual revenues of up to R$ 78 million. With tax rates of 8% for industry and commerce and 32% for services, this regime is suitable for businesses with high profits and low operating costs.

[Article]: All about Presumed Profit

Characteristics of companies suitable for Presumed Profit

Moderate turnover

Lucro Presumido (Presumed Profit) is suitable for companies with an annual turnover within the limits established by law. It is generally an option for companies with revenues of up to R$ 78 million.

Adequate profit margin

Companies that have a presumed profit margin compatible with the percentages established by legislation for certain activities.

Simplicity in accounting

Presumed Profit offers simplified taxation compared to Real Profit and is suitable for companies wishing to avoid the accounting complexity associated with the latter.

Permitted activities

Some economic activities are better suited to Presumed Profit, such as the provision of services, commerce and other sectors that are not obliged to use Real Profit.

Examples of companies suitable for Presumed Profit can include consultancies, accounting firms, small businesses, restaurants, among others. The choice of tax regime should be based on a careful analysis of the company's specific characteristics, taking into account factors such as economic activity, annual turnover and other particularities.

Real Profit

The Real Profit regime, designed for companies with low profit margins or losses, calculates tax rates based on accounting profit. This regime is commonly adopted by large industries and companies with high operating costs.

[Article]: Accounting firm for Real Profit companies

Characteristics of Real Profit companies

High turnover

Companies with a more significant turnover can opt for Real Profit, as this system bases taxes on actual profit,Turnover above R$ 78 million

Specific activities

Some economic activities are obliged to adopt the Real Profit system, regardless of turnover. Sectors such as financial institutions, insurance companies, among others, can fall into this category.

Accounting accuracy

Companies that keep detailed accounts and have the ability to calculate their net profit more accurately can benefit from Lucro Real.

Possibility of offsetting losses

Real Profit allows the offsetting of previous tax losses, which can be interesting for companies that have faced years of negative results.

[Article]: How to calculate the Real Profit?

Ideal scenario the best choice for online betting companies 

As many online betting companies have high annual turnover, they will be taxed under Lucro Real (Real Profit). However, in an up-and-coming scenario, Presumed Profit stands out as the most appropriate option for a business in this field.

This regime shows a remarkable affinity with the characteristics of the online betting sector, characterized by its profitability and high margins. In an environment where operations often involve few costs. In an environment where operations often involve few operating costs compared to their revenues, Presumed Profit offers simplified taxation and rates that align with the financial characteristics of this market.

[Article]: Labor compliance for online gaming companies: see how to reduce risks

Conclusion

Choosing between Simples Nacional, Lucro Presumido and Lucro Real for online betting companies requires a thorough analysis of the specific characteristics of each regime and the operations of the business. Taking into account factors such as turnover, profit margins and operating costs, it is possible to make an informed and strategic decision.

In short, Simples Nacional is ideal for small and micro businesses, Lucro Presumido stands out for businesses with high profits, while Lucro Real is more appropriate for large companies with low profit margins. By understanding the nuances of each tax regime and relying on a specialized accounting firm, online betting companies can optimize their tax burden and ensure sound and efficient financial management.