When the inheritance or donation comes from another country, the beneficiary often has doubts.
Receiving inheritance and giving is unlikely often throughout life. Therefore, the accounting process for these benefits often raises doubts. If, in addition, the inheritance or donation comes from another country, more questions are added to the case.
Find here are some clarifications on the subject.
Funds from inheritances or donations are exempt from income tax, but are subject to the payment of taxes to the states where the beneficiaries reside.
The responsibility of the states is established in the Federal Constitution, in its article 155.
For the assets left overseas, the paragraph 1, item III, items “a” and “b”, sets that it is upon the complementary law to rule the responsibility for setting and collecting of the Tax on causa mortis transmission and donation of any property or right ("ITCMD").
However, so far, no complementary laws have been enacted to regulate the subject, creating, thus, room for legal discussion and legal uncertainty.
The Federal Supreme Court has already recognized the general impact of the issue in the judgment of an Extraordinary Appeal that is currently in progress, that is, there is no definition of the tax burden, nor its calculation methodologies and terms.
In turn, states have enacted laws that provide for the ITCMD and provide for the collection of tax even when the inheritance or donation is processed (from) abroad. This means that the beneficiary's state of residence is the responsible for charging the tax.
If the donor/de cujus resident in Brazil and the beneficiary abroad, payment of the tax will be due to the donor's state of residence and/or the inventory process.
The rate varies according to the legislation of each state, but is limited to 8% (Federal Senate Resolution 9/1992).
We list the ITCMD charged in the states of Rio de Janeiro and São Paulo as an example:
Rio de Janeiro |
||
Legal Act: |
Law 7,174/2015 |
|
UFIR Value: |
BRL 3.2939 |
|
Rate |
UFIR Values |
Amounts in BRL |
4% |
Up to 70,000 |
BRL 230,573.00 |
4.50% |
Over than
70,000 and up to 100,000 |
Over than BRL
230,573.00 and up to BRL 329,390.00 |
5% |
Over than 100,000
and up to 200,000 |
Over than BRL
329,390 and up to BRL 658,780 |
6% |
Over than
200,000 and up to 300,000 |
Over than BRL
658,780 and up to $ 988,170 |
7% |
Over than
300,000 and up to 400,000 |
Over than BRL
988,170.00 and up to BRL 1,317,560.00 |
8% |
Over than
400,000 |
Over than BRL
1,317,560.00 |
Sao Paulo |
|
Legal Act: |
Law
10,705/2000 |
UFESP Value: |
BRL 25.70 |
Rate: |
4% |
The beneficiary (heir or donee) is the taxpayer, except for specific cases provided for by law.
Domingues e Pinho Contadores warns its clients to discuss with their legal advisors the above mentioned legal debate, but recommends the payment of ITCMD to the states in order to comply with state laws on the issue, always respecting the limits of exemption, non-levy and/or other aspects that may influence the tax payable result.
In turn, DPC supports the taxpayer in the registration procedures of the donation and issuance of the ITCMD payment form.
In addition to these punctual services, DPC offers a complete set of solutions that guarantee the peace of mind to domestic and foreign individuals to meet their tax obligations, in compliance with Brazilian law.
Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br
Av. Rio Branco 311, 4º e 10º andar - Centro
CEP 20040-903 | Tel: +55 (21) 3231-3700
Rua do Paraíso 45, 4º andar - Paraíso
CEP 04103-000 | Tel: +55 (11) 3330-3330
Rua Teixeira de Gouveia 989, sala 302 - Centro
CEP 27910-110 | Tel: +55 (22) 2773-3318