| Calculation basis |
Tax rate |
| Up to 10,000 UFESPs (up to BRL 353,600.00) |
2%
|
| From 10,000 to 85,000 UFESPs (From BRL 353,600.00 to BRL 3,005,600.00) |
4% |
| From 85,000 to 280,000 UFESPs (From BRL 3,005,600.00 to BRL 9,900,800.00) |
6% |
| Above 280,000 UFESPs (Above BRL 9,900,800.00) |
8% |
* Currently one UFESP corresponds to BRL 35.36.
It is worth mentioning that currently a flat rate of 4% is levied on the transfer of assets by way of donation or inheritance.
The purpose of the Bill of Law is to align the São Paulo State Law with the changes introduced by the Brazilian Tax Reform (Constitutional Amendment 132 of 2023). This amendment (among other changes) modified article 155, including item VI, to establish that the ITCMD will be progressive based on the value of the inheritance, legacy, or donation.
It is important to note that if PL 7/2024 is approved and converted into law in 2024, the principles of anteriority should be respected, meaning that the law that creates or increases ITCMD can only enter into force in the following year and after 90 days of publication. Therefore, the proposed changes should take effect only in 2025.
As a result, the 4% tax rate (without progressivity) will continue applying for 2024. This may present an opportunity for families to review their succession planning.
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Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.
