ITCMD and ITBI: LC No. 227/2026 updates provisions on these taxes

Changes impact estate and succession planning, requiring greater attention to the transfer of assets and rights

Complementary Law No. 227/2026, among its various provisions, brought changes related to the Estate and Gift Tax (ITCMD) and Property Transfer Tax, by onerous act, of real estate and rights related thereto (ITBI).

The new rule addresses aspects such as the triggering event, calculation basis, progressive rates, immunities, and place of collection of the ITCMD. Among the highlights, the Law regulated the incidence of this tax on situations involving assets, rights, and equity structures located abroad. Regarding the ITBI, the main point relates to the tax calculation basis. See more below:

ITCMD

The ITCMD applies to the transfer of any assets or rights through inheritance (causa mortis) or donation.

New approach to trusts (succession planning and asset protection structure abroad, often used to avoid inventories)

Whereas previously there was no legal provision regarding trusts for ITCMD purposes, with LC No. 227/2026, there is now taxation:

• Transfer causa mortis – upon the death of the settlor, in relation to the trust assets transferred to a beneficiary.
• Transfer donation – upon the transfer of trust assets or rights to the beneficiary (inter vivos act).

Cases where ITCMD does not apply

Among the numerous cases listed, it is worth highlighting the non-application of the tax on benefits due under supplementary private pension plans, insurance policies, savings plans, or similar onerous legal transactions involving elements of chance, even if the beneficiary is a third party.

Calculation basis

The calculation basis for ITCMD is the market value of the asset or right transferred.

Successive donations

In the event of successive donations between the same donor and the same recipient, it is established that:

• all transfers made within the period defined in state or district tax legislation will be considered;
• the amount of ITCMD due will be recalculated for each new donation, by adding the values of the assets previously transferred to the calculation basis; and
• the amount to be collected will be the amount of ITCMD due, less the amounts of ITCMD previously collected, observing the progressive rate provided for in state or district legislation based on the total value of donations in the period.

Progressive tax rates

ITCMD tax rates will be progressive, with higher percentages applied as the value of the share, bequest, or donation increases. However, the maximum rate set by the Federal Senate must be observed.

The tax rate for transfers:

• causa mortis -> is the rate in effect at the time of the opening of the succession.
• by donation -> is the rate in effect at the time of the donation.

For the application of the rates, the calculation base value must be considered in the initial range and, for any amount exceeding this, in the subsequent range, and so on.

ITCMD taxpayers

In transfer causa mortis -> the successor.

In transfer by donation -> the donee.

ITBI

The tax calculation basis may be estimated based on reference values previously determined by the municipality.

LC No. 227/2026 defines market value as the value at which the property or right would be traded in cash, under normal market conditions, estimated using technical criteria, considering at least one of the following:

• analysis of prices practiced in the real estate market;
• information provided by notary and registry services and financial agents;
• location, type, use, standard, and area of land and construction, among other characteristics of the real estate property; and
• other technical parameters usually observed in real estate appraisals.

The taxpayer may contest the assigned market value by submitting a contradictory assessment in a specific procedure, as governed by applicable municipal or district legislation.

Support for individuals

DPC's individual customer service center advises its clients on best practices for calculating taxes and complying with tax obligations related to ITCMD, ITBI, and other taxes. Count on this personalized support: dpc@dpc.com.br.