Brazil considers ITR tax suspension for invaded rural properties

The Brazilian Economic Affairs Commission (CAE) has approved a bill that would allow owners of rural properties to suspend the payment of the Rural Territorial Property Tax (ITR) if the land is totally or partially invaded, provided the occupation prevents economic use and exploitation.

To qualify for this exemption, owners must provide a police report and notify the federal tax administration. The benefit must be terminated once full possession of the property is recovered. The bill also proposes changes to how the Bare Land Value (VTN) is determined, allowing taxpayers to present their own reports if they disagree with the Federal Revenue's tables.

Separately, the deadline for the 2026 ITR declaration has begun. Taxpayers must submit their declarations by September 30 to avoid fines. The declaration is mandatory for individuals and legal entities that own or possess rural properties, unless they meet specific legal immunity or exemption criteria.