With Tax Reform, the increase in inheritance tax depends on the states; understand what it looks like – Business

Popularly called inheritance tax, the Causa Mortis and Donation Transmission Tax (ITCMD) underwent changes with the tax reform (PEC 45), apparently small, but which could significantly change the panorama of taxation of large inherited assets.

Currently, the tax is intended to be collected at the state level and is paid by whoever receives the inheritance or donation. The established change obliges all states to charge progressively, varying from 2% to 8%, depending on the values ​​of inherited assets.

In the case of real estate (such as houses and commercial spaces), the charge is made by the state in which the property is located. When the asset is movable (which can be a car, the balance of a bank account, among others) the charge is made in the state where the inventory is processed.

How is it in Ceará

In Ceará, the collection of tax on inheritances and donations was already progressive and varied from 2% to 8%, even before PEC 45. Therefore, at this point, the new rules coming with the tax reform would not change this scenario. Currently, the 8% rate is applied to inheritances starting at approximately R$1.3 million.

According to the lawyer president of the OAB-CE Tax Law Commission, Hamilton Sobreira, the Federal Constitution already gave the Senate the power to set this rate on inheritances and that there was already a proposal in the legislative house to raise the ceiling to 16%.

This, in fact, precedes the tax reform approved at the end of 2023, which is now going through the regulatory process – remembering that this Wednesday, the 24th, the Minister of Finance, Fernando Haddad, delivered PLP 68/2024 which brings the regulation taxes and exemptions, such as those for the national basic food basket.

The fact is that with the movements made around this issue, experts believe that there will be a rush to make donations and succession planning in this year 2024 as it is the last year to take advantage of the application of the rules prior to the reform.

The report asked the State Secretary of Finance (Sefaz) to find out if the state is considering increasing the tax rate for large inheritances, however, until the closing of this matter there was no response. As soon as the response is received, this article will be updated.