Inheritance tax has changes for 2018 in Rio de Janeiro. The new collection rules in the state have been altered. According to the publication in the state’s Official Gazette, on the 17th, the new amounts take effect as of the first day of January 2018. However, according to the Federal Constitution, the new rate may only be charged 90 days after publication.
As a result, the new rules would only take effect from mid-February of next year. Before the decree, the Tax on the Transmission Causa Mortis and Donation of Assets and Rights, the ITCMD – or inheritance tax, as it is also called – was exempt for properties with values of up to R$ 320,000.
With the new law, the ceiling for exemption falls to approximately R$ 191,000. The new rule also creates new rates and six progressive collection brackets.
Previously, the charge varied between 4.5% and 5%, according to the value of the property. Now, properties between R$ 191,000 and R$ 223,000 will be taxed at 4%. Then, it rises to 4.5% for properties up to R$ 320,000. Up to R$ 638,000, the tax rises to 5%. And there are still brackets from R$ 638,000 to R$ 957,000, at 6%. For properties with a value between R$ 957,000 and R$ 1.2 million, the charge is 7%. The maximum rate of 8% is applied to properties with values above R$ 1,276,000.
ITCMD in UFIRs for 2018:
- Exempt – properties up to 60,000 UFIRs
- 4% for properties and other assets from 60,000 to 70,000 UFIRs
- 4.5% from 70,000 to 100,000 UFIRs
- 5% from 100,000 to 200,000 UFIRs
- 6% from 200,000 to 300,000 UFIRs
- 7% from 300,000 to 400,000 UFIRs
- 8% for properties and other assets above 400,000 UFIRs
Exemptions – Amendments approved by the government guaranteed the exemption for owners of a single property located in an underprivileged community. Another measure endorsed is that funds from an estate – inheritances in cash – may be used to pay the ITCMD. Foundations and associations that carry out activities aimed at social assistance, health, and education will also be exempt from the tax.
Read also:
An heir cannot claim a corporate stake without probate
Sale of a property without the heir’s consent is annulled
Sources: Band.com.br and Legislative Assembly
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