The Federal Supreme Court (STF) has suspended judgment on Theme 1.214, which discusses the levying of ITCMD (Imposto sobre Transmissão Causa Mortis e Doação) on VGBL (Vida Gerador de Benefício Livre) and PGBL (Plano Gerador de Benefício Livre) plans in the event of the death of the plan holder.
The trial was suspended due to a request by Justice Gilmar Mendes for a rehearing. At the time, there were three votes in favor of the taxpayers, recognizing that ITCMD is not levied on amounts received by beneficiaries of private pension plans (VGBL and PGBL).
What did the Justice say?
The Justice argued that the amounts received cannot be interpreted as an inheritance, but that they function as a kind of life insurance. This interpretation is based on the understanding that both plans “converge on an insurance legal regime that excludes the discipline of the inheritance regime”, having an ancillary purpose aimed at guaranteeing the security of beneficiaries in the event of the death of the holder.
Therefore, the amounts received by the beneficiaries cannot be considered as arising from inheritance rights and do not attract ITCMD.
The thesis established in the judgment of this general repercussion issue could directly influence the outlines of the tax reform. This is because, if the STF considers the plans to be a type of insurance, such an understanding would go in the opposite direction to that provided for in PLP 108/2024 (which regulates tax reform), which provides for ITCMD to be levied on VGBL and PGBL plans.
Conclusion
In this scenario, the issue will certainly lead to new discussions and possible legal disputes, requiring greater harmonization of ITCMD rules at a national level.
The trial has yet to be finalized, but taxpayers should stay tuned for the next developments in the case.
If you have any questions, our Tax team is at your disposal for clarification and guidance.
