Among the various ups and downs of the Tax Reform, the ITCMD (Tax on Transfers Due to Death and Donations) ended up remaining under the tax jurisdiction of the States and the Federal District.
The difference is that the Tax Reform included a rule in §1 of art. 155, of the CF/88, which makes the referred tax progressive, which has been in force since the moment of its publication, that is, since December 20, 2023.
Based on this, the Legislative Assembly of the State of São Paulo acted quickly and created Bill No. 7/2024, which aims to change solely and exclusively the ITCMD-SP rates to make it progressive.
If the bill is approved, the tax will no longer have a single rate of 4%, but will have rates ranging from 2% to 8%, every two percentage points, to be applied to the value ranges set for the calculation base, as shown below:
Up to 10,000 ufesps (R$ 353,600.00) – 2%
From 10,000 to 85,000 ufesps (from R$ 353,600.00 to R$ 3,005,600.00) – 4%
From 85,000 to 280,000 ufesps
(from R$ 3,005,600.00 to R$ 9,900,800.00) – 6%
Above 280,000 ufesps (R$ 9,900,800.00) – 8%
The project already takes the opportunity to raise the ITCMD to the maximum rate, as authorized by Resolution 9/1992 of the Federal Senate.
There is another important consequence of the Tax Reform: the “regulation” of the ITCMD (Tax on Income Tax) for cases in which the donor resides abroad, as well as for deceased individuals who resided abroad, and their respective beneficiaries (donee, heir, or legatee, as the case may be) are domiciled in Brazil. It seems to us that this weakens—if not annihilates—the thesis already established before the increase took effect.
