Inheritance Income Tax? Yes, you read that right!

In a commentary for It’s Money, lawyer Marina Chaves talks about the recent decision by the Federal Supreme Court (STF) which has a significant impact on estate and succession planning for Brazilian families, in an article by Robson Tavernard, partner at Blue3 Investimentos.

“The STF’s validation of the joint collection of IR and ITCMD represents a significant increase in the tax burden on inheritances, requiring even more detailed and strategic planning to protect family assets,” says Marina, who highlights the increased complexity and tax burden on inheritances, emphasizing the importance of well-structured succession planning.

Check out the full article at  https://itsmoney.com.br/imposto-de-renda-na-heranca

Related publications

Due diligence in M&A operations: understand what the importance is for buying and selling companies

Due diligence is an absolutely indispensable market practice in merger, acquisition, spin-off, or incorporation processes, as it allows, with total transparency, to know in depth the real situation of the company in question, the advantages and risks associated with a possible decision. It is an essential audit process to re-evaluate the transaction of purchase, sale and corporate reorganizations, through the analysis of the target company’s strengths and weaknesses.  This audit is also responsible for reviewing the practices and routines of the audited company in the…

The challenges of tax reform in Brazil.

One of the biggest challenges for the year 2023 is the government’s chess game with the National Congress to approve the long-awaited tax reform. An important date in this history is approaching: it is the 23rd of May, when the rapporteur of the proposal of the working group on the subject in the National Congress, deputy Aguinaldo Ribeiro, will deliver the final report with the opinion on the changes that will impact the Brazilian system based on a possible approval. In an interview with LexLatin,…

Taxation of profits and dividends: legislative change

In Brazil, the distribution of profits and dividends calculated based on the results calculated by the companies is not subject to income tax. In practice, corporate entities tax their profit with a nominal rate, as a rule, at the rate of 34% (income tax “IRPJ”, its additional IRPJ and social contribution on net profit “CSLL”), but their distribution to domestic partners and shareholders is exempt, causing no further taxation. This exemption originates from a legislative change in 1995, with the enactment of Law 9249/95, which…