Alana Aiche do Carmo Dahrouj
Lawyer at Marcos Martins Advogados
The Federal Supreme Court (STF) has ruled that states cannot levy Causa Mortis or Donation Transfer Tax (ITCMD) on inheritances and donations of assets from abroad, without the institution of a Complementary Law.
The judgment ended on the 26th with recognized general repercussion, meaning that the decision should be replicated for all cases dealing with this issue in the country.
The discussion, which is already long-standing in the judiciary, was based on the definition of the need to institute the collection by Complementary Law, and not by the states’ own rules.
The decision will bring a major change to the current tax scenario, given that at the moment 22 out of 27 Brazilian states have their own rules for collecting ITCMD in these cases.
Marcos Martins Advogados makes its tax team available to answer any questions on the subject.
