Rearp: Law allows for the revaluation of assets in Income Tax

Enrollment in the Special Regime for Asset Revaluation and Regularization (Rearp) is optional and must be analyzed by the taxpayer

The value of real estate and vehicles declared on income tax returns may be updated in line with market value. Published on November 21, Law 15,265/2025, among other provisions, creates the Special Regime for Asset Revaluation and Regularization (Rearp), which opens up this possibility.

Taxpayers who join Rearp can choose from the following options:

• updating the value of motor vehicles, boats, and aircraft subject to public registration, as well as real estate located in Brazil or abroad; and
• regularizing assets or rights that have not been declared or have been declared with omissions or inaccuracies in relation to essential data.

The update does not apply to movable or immovable property sold prior to the date of the option for the update and applies only to bare land in the case of rural property.

Update

The rules applicable to individuals and legal entities must be observed:

Regularization

Regularization of funds, assets, or rights is authorized for individuals or legal entities residing or domiciled in Brazil as of December 31, 2024, provided they were or had been owners or holders of such assets in periods prior to that date.

The regularization applies to assets or rights of lawful origin, held in Brazil or abroad, or repatriated by residents or domiciliaries in the country, in accordance with foreign exchange or tax legislation, that were not declared or were declared with omissions or inaccuracies regarding essential information.

In this case, opting for Rearp must be done through a single regularization statement, submitted by the individual or legal entity, containing a detailed description of the assets and rights to be regularized, of which they are holders as of December 31, 2024, along with their respective values in local currency, accompanied by the full payment or first installment of the applicable tax and fine.

It is important to mention that the assets included in the single declaration for adherence to Rearp must also be reported in:

• The Annual Income Tax Return for the 2024 calendar year, or in its amended version, in the case of individuals; or
• The corporate accounting records for the calendar year of adherence, in the case of legal entities.

The amount of the assets will be considered as an increase in net worth acquired on December 31, 2024, even if there is no balance or ownership title on that date. The individual or legal entity will be responsible for paying income tax on capital gains at a rate of 15%, in addition to a 100% fine on the tax due.

Opting for Rearp

Enrollment in the program for the purpose of updating or regularizing assets or rights must be done within 90 days from the date of publication of the Law, with the submission of the respective declaration and payment of taxes and fines.

Opting for Rearp requires a careful and individualized analysis of each client's financial situation, and it is essential to have advisory support for this assessment.

Specialized support

Domingues e Pinho Contadores assists individuals and companies in identifying tax opportunities, ensuring the adoption of best practices and tax compliance. Count on this support: dpc@dpc.com.br.