The Cost of Winning Olympic Gold

As the saying goes, “in this world, nothing is certain except death and taxes.” That’s true even if you’re an Olympic athlete.

Last Sunday, the 2024 Olympic Games came to a close. After weeks of competition, Brazil secured 3 gold medals, 7 silver medals, and 10 bronze medals. For these athletes, the sense of national pride is immense, and so too is the financial reward that accompanies an Olympic medal. 

Brazilian athletes who earned a medal in Paris received financial bonuses from the Brazilian Olympic Committee, ranging from BRL$140,000 (approximately US$25,500) to BRL$1,050,000 (approximately US$191,000). While these rewards recognize the athletes’ success, they also come with a significant catch - the burden of paying income tax.

Under normal circumstances, any Brazilian athlete who won a medal in Paris would face a 27.5% tax on the income received from the Brazilian Olympic Committee. However, in a move that surprised many, the federal government recently published Medida Provisória No. 1.251/2024. This provisional rule exempts these cash rewards from taxes, allowing athletes to keep more of their winnings.

While medals and trophies from the Paris Olympics were already free from taxation, athletes must remain vigilant about taxes on income from other sources, such as sponsorships,  and endorsements. These additional earnings are still subject to Brazil’s income tax laws.

The joy of victory is always sweet, and for the Brazilian medalists in this year’s Olympic Games, it’s now just a bit sweeter knowing they can keep more of their well-deserved earnings.