Recently, Ramon Dino, better known as the “Acre Dinossaur,” was crowned champion of Mr. Olympia 2025, the most important bodybuilding competition in the world.

Beyond the historic achievement, the victory sparked an interesting tax controversy: after all, how should the prize money received in the United States be taxed?

A family member of the athlete publicly commented that the solution would be simple: they should just avoid bringing the money into Brazil. According to her, since taxes had already been paid in the U.S. and they had a bank account abroad, it would be “foolish” to transfer the funds to Brazil and pay taxes again.

This interpretation, however, reflects a common misunderstanding about the principle of worldwide taxation applicable to Brazilian tax residents.

Brazil’s tax system adopts the worldwide income criterion, under which every tax resident in Brazil must report income earned anywhere in the world—even if the funds are not repatriated. In other words, if a Brazilian tax resident earns income in Narnia, those amounts must be duly reported to the Federal Revenue Service.

Therefore, simply choosing not to transfer the funds to Brazil does not, by itself, eliminate the incidence of Brazilian income tax. What will actually determine whether additional taxation applies are the nature of the income, the possible application of double-taxation treaties, and proof of taxes paid abroad, which in certain cases may be eligible for offset.

In Ramon Dino’s case, the prize money was received in the United States, where federal withholding taxes can reach approximately 30% on prizes and earnings paid to non-residents.

Although Brazil and the U.S. do not have a double-taxation treaty, a reciprocity agreement recognized by Declaratory Act SRF No. 28 of April 26, 2000 authorizes, in specific situations, the offset of U.S. tax paid against Brazilian due individual income tax.

The legal classification of the prize money is decisive. If it is considered employment income, a rate of up to 27.5% applies; if classified as ordinary income, the rate is 15%; and if treated as capital gains, it ranges from 15% to 22.5%. Since the U.S. withholding reached a higher percentage, it is likely that no additional amount will be owed to the Brazilian tax authorities.

Naturally, the athlete must fully report these amounts in his individual income tax return for 2026 (tax year 2025), including taxes paid in the United States and observing foreign-exchange conversion rules and documentation requirements.

Ramon Dino’s case highlights the general public’s lack of understanding of Brazilian tax rules and reinforces the need for careful technical analysis to prevent double taxation and potential tax irregularities.

In times of globalization, proper tax guidance is as essential as the training that leads to the podium.

https://tagdlaw.com.br/ramon-dino-e-a-tributacao-do-mr-olympia-2025/