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Brazilian tax reform and judicial rulings

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-09-15 14:52 UTC → 2026-09-17 04:16 UTC · added removed

Brazil is undergoing significant shifts in its tax landscape driven by legislative reforms and judicial rulings. Following the sanctioning of Complementary Law No. 227 in January 2026, which regulated the Imposto sobre Transmissão Causa Mortis e Doação (ITCMD), there has been an urgent push for estate planning. This reform mandates progressive tax rates—increasing up to a national ceiling of 8%—and requires the use of market values rather than historical values for calculating asset transfers. Simultaneously, the Brazilian judiciary is addressing critical taxation issues. The Supreme Federal Court (STF) ruled in a 5-4 decision that PIS/Cofins taxes do not apply to the financial returns of technical reserves for insurance and private pension entities, a decision estimated to cost the federal treasury up to R$ 5.3 billion over five years. In the real estate sector, the Superior Court of Justice (STJ) upheld a 20% Income Tax on capital gains for real estate ‘fund of funds’ (FoFs) structures, rejecting arguments that taxation should only occur when funds reach the end investor. Furthermore, the STF is deliberating on structures. Regarding ITBI tax immunity for real estate companies during asset transfers for social capital incorporation. Under Extraordinary Appeal 1.495.108 incorporation (Theme 1.348), the court is examining whether constitutional immunity applies STF has established a provisional majority of five votes to companies whose primary grant immunity. Relator Edson Fachin argued that constitutional restrictions regarding predominant real estate activities involve the purchase, sale, rental, should only apply to mergers, incorporations, spin-offs, or leasing corporate extinctions, rather than the initial formation of real estate. Justice capital. This position was supported by ministers André Mendonça, Nunes Marques, Luiz Fux, and Cristiano Zanin. Dissenting ministers Gilmar Mendes has proposed denying immunity if the acquiring company has predominant and Flávio Dino argued that taxation is permitted for companies primarily engaged in real estate activity, a position supported by Justice Cármen Lúcia. activities to protect municipal revenues. The matter judgment has been moved to suspended following a physical plenary session. request for review by Minister Alexandre de Moraes.

Versions

  1. 2026-09-17 04:16 UTC Brazilian tax reform and judicial rulings
  2. 2026-09-15 14:52 UTC Brazilian tax reform and judicial rulings
  3. 2026-09-03 02:38 UTC Brazilian tax reform and judicial rulings

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