Brazil's tax reform spurs property donation surge and split‑payment rollout
Brazil’s tax reform, which began in 2026, replaces five existing taxes with a dual value‑added tax (IVA) system – the federal Contribuição sobre Bens e Serviços (CBS) and the state/municipal Imposto sobre Bens e Serviços (IBS). The transition will be completed by 2033. A central feature of the reform is the split‑payment mechanism that automatically diverts the tax portion of an invoice to the Treasury at the moment of payment; it starts as an optional B2B electronic process and will later become mandatory for all transactions.
The reform has triggered a sharp rise in property donations as families rush to transfer assets before the new rules on the Inheritance and Donation Tax (ITCMD) take full effect. The Notarial College of Brazil reported 185,861 public donation deeds in 2025, a 59 % increase over 2020’s 116,225. ITCMD rates will become progressive, reaching up to 8 % for high‑value assets, and the tax base will shift from patrimonial to market value, prompting a record‑breaking volume of deeds in São Paulo and a rise in ITCMD revenue to R$ 6.39 billion in 2025.
Split‑payment is projected to curb tax evasion by automating collection at the point of sale, but it will also tighten cash flow for companies with thin margins, forcing many to adapt their financing and accounting systems during the transition period.
Entities: Brazil · CBS (Contribuição sobre Bens e Serviços) · CBS/IBS (dual IVA system) · Colégio Notarial do Brasil (CNB) · Constitutional Amendment No. 132/2023 · Eduardo Calais · IBS (Imposto sobre Bens e Serviços) · ITCMD · João Eloi Olenike
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Brazil’s tax reform replaces five taxes with a dual IVA system that will be fully in place by 2033. (Reforma tributária brasileira entrou em vigor em 2026 ... o período de transição vai até 2033)
- [● 3 SOURCES] Split‑payment will initially be optional for B2B electronic transactions and later become mandatory for all transactions, including consumer purchases. (Inicialmente, o split payment será opcional e restrito a transações eletrônicas entre empresas (B2B)... nas fases subseq)
- [● 5 SOURCES] The ITCMD tax will become progressive, with rates potentially reaching 8 % for high‑value transfers. (Com a gradual entrada ... alíquota ... pode chegar ao máximo de 8% ...)
- [● 6 SOURCES] In 2025, 185,861 public deeds of property donations were registered, a 59 % increase over 2020’s 116,225. (Segundo o Colégio Notarial do Brasil ... 185.861 escrituras públicas – um crescimento de 59% em comparação aos 116.225…)
- [● 3 SOURCES] The reform introduces a split‑payment mechanism that automatically transfers the tax portion at the moment an invoice is issued. (Split payment ... vai fisgar automaticamente, no ato da emissão de uma nota, a parcela dos tributos devidos.)
- [● 6 SOURCES] Families are accelerating property donations to avoid higher future ITCMD rates under the reform. (A corrida … reflete uma crescente busca das famílias para antecipar a transferência de patrimônio, antes da entrada em v)
- [● 2 SOURCES] The reform’s split‑payment system is expected to eliminate most tax evasion by automating collection at the point of sale. (A implantação do split payment ... reduz drasticamente a sonegação ... arrecadação totalmente automatizada.)
- [● 2 SOURCES] Split‑payment may reduce cash flow for companies with thin margins, requiring early adaptation or financing. (Uma empresa com margem pequena de lucro terá que se adequar o quanto antes ... talvez até tenha que buscar financiamento)
- [● 4 SOURCES] 185,861 public deeds of property donation were recorded in 2025, a 59 % increase over the 116,225 deeds recorded in 2020. (em 2025, foram registradas 185.861 escrituras públicas – um crescimento de 59% em comparação aos 116.225 atos formalizad)
- [● 4 SOURCES] The reform introduces a split‑payment mechanism that automatically transfers the tax portion at the moment an invoice is issued; it is initially optional for B2B electronic transactions and later will (Um ponto crítico é o split payment, sistema que separa automaticamente o valor do imposto no momento do pagamento eletrõ)
- [○ 1 SOURCE] In São Paulo, ITCMD revenue rose 81 % to R$ 6.39 billion in 2025, up from R$ 3.5 billion in 2020. (Em 2020, o ITCMD gerou R$ 3,5 bilhões aos cofres paulistas. Em 2025, o valor alcançou R$ 6,39 bilhões, um crescimento de)
- [○ 1 SOURCE] Brazil's tax reform entered into force in 2026 and will replace five taxes with a dual IVA system (CBS federal and IBS state/municipal) fully by 2033. (Reform tributária brasileira entrou em vigor em 2026 e substitui cinco tributos por um sistema unificado chamado IVAdual)