USA withholds tax on Mr. Olympia prize, not Brazil – 10/21/2025 – Market

by Andrea
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Contrary to what a post on social media suggests, the Brazilian government will not charge 27.5% tax on the prize received by bodybuilder Ramon Dino after winning Mr. Olympia 2025, held in the United States. The content analyzed suggests that the Ministry of Finance, headed by Fernando Haddad, would be responsible for withholding the value, when, in reality, taxation occurs in the United States, where the athlete was awarded.

The post, verified by Comprova, shows a montage with photos of Haddad and Dino accompanied by the text: “After winning Mr. Olympia, Ramon Dino should win a prize equivalent to R$550,000. Of the total, the Brazilian government will charge 27.5% in taxes. This is the way the State treats its athletes.”

The publication distorts true data — the existence of the maximum IRPF (Personal Income Tax) rate — by falsely attributing to the minister the creation or imposition of this charge. The rule is old, enshrined in law since 1998, and applies to all Brazilian taxpayers, unrelated to recent government decisions. However, the prize was paid in the United States, a country that withholds 30% income tax at source on amounts paid to foreign artists and athletes, according to Publication 515 (2025) and Form 1042-S of the Internal Revenue Service, an entity equivalent to the American Federal Revenue Service.

In Brazil, the IRPF 2024 Questions and Answers manual, from the Federal Revenue Service, confirms that tax paid abroad can be offset in Brazil up to the limit of what would be due here (27.5%). As the American rate is higher, there is no additional tax to pay in the country, as long as the athlete proves the tax payment in the United States.

In a note, the Ministry of Finance forwarded the Federal Revenue’s position, which states: “It is not up to the Federal Revenue to decide who will or will not be taxed, this is provided for by laws approved by the National Congress.” The body also highlighted that the IRPF progressive table was not changed during the current administration and that no new measures were created by Haddad. The IRS reinforced that the taxation of athletes follows the same rules applied to all taxpayers.

The report contacted the profile that published the post and the athlete Ramon Dino, but there was no response until the publication of this text.

Why do we investigate?

Comprova monitors suspicious content published on social networks and messaging applications about public policies, health, climate change and elections at the federal level and opens investigations into those publications that have greater reach and engagement. Suggestions and questions related to questionable content can also be sent to Sheet by email to Folha.informacoes@grupofolha.com.br.

Read the full verification on the Comprova website.

The investigation of this content was carried out by GZH and O Dia and published on October 21 by Projeto Comprova, a coalition that brings together 41 vehicles to check viral content. It was verified by Folha, UOL, A Gazeta and Estadão.

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