In Portuguese Tax on Contests, Raffles and Free Gifts is named Taxa de Fiscalização de Sorteios, Brindes ou Concursos.
The Taxa de Fiscalização de Sorteios regulates the contests, raffles and free gifts given by legal entities. To be considered a legal activity, it is necessary for the company to pay a tax to the government, and then make a request for authorization.
These raffles have to be registered by the Caixa Econômica Federal and the Secretaria de Acompanhamento Econômico, the Secretariat for Economic Monitoring, through the Ministry of Finance. Even raffles made on social media networks need to register, unless they are concursos culturais (cultural contests) where the winner is chosen by merit – for instance, if the person scored more points than the other competitors, if they wrote the best sentence evaluated by a judging commission or if they were the fastest runner, among others.
The amount paid varies between BRL 27 to BRL 66,667, depending on the cost of the prizes offered. The payment must be made using a GRU.