The Federal Supreme Court has ruled that it is unconstitutional to levy ITCMD (tax on the transfer of property or rights) on VGBL (free benefit generating plan) and PGBL (free benefit generating life) private pension plans.
The judgment on Theme 1.214 was concluded on December 13, 2024, consolidating the understanding that beneficiaries of VGBL and PGBL pension plans should not pay ITCMD when receiving amounts due to the death of the plan holder. The rapporteur of the case, Justice Dias Toffoli, recognized that the relationship between the beneficiaries and these pension plans stems from a contractual relationship, and not from a transfer of inheritance rights, as argued by the State of Rio de Janeiro.
The STF’s position provides greater security for the beneficiaries ofVGBL and PGBL plans, ruling out the undue incidence of taxes at the time of receiving transfers of amounts or rights relating to pension plans. This position is also in line with that defined in PLP 108/2024, which removed the ITCMD levy for these pension plans as part of the tax reform.
If you have any questions, our tax team is available for further clarification and guidance.
