The 3rd Chamber of Public Law of the Court of Justice of São Paulo upheld a decision that declared immunity from the payment of the Tax on Transmission Causa Mortis and Donation of Any Assets or Rights (ITCMD) on donations received to combat Covid-19 received by an association, resources allocated to the purchase of materials for the Hospital São Paulo.
The association filed the petition seeking recognition of its right to the tax immunity provided for in article 150, VI, c and § 4, of the Federal Constitution, with respect to the collection of the ITCMD on the donations received from the state decree that recognized a state of public calamity arising from the pandemic until the end of the donation campaign.
The Treasury alleges that the association does not meet the requirements necessary for the exemption.
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According to the rapporteur of the appeal, Paola Lorena, the Federal Supreme Court (STF) understands that the immunity provided for in article 150, item VI, c, of the Constitution applies to the ITCMD. “In this scenario, the Court of Justice of São Paulo has been taking a position favorable to the recognition of the immunity contained in article 150, item VI, c, of the Federal Constitution, levied on donation operations for non-profit associations.
In the specific case of these records, the appellant provided proof of its recognition as a welfare entity and that it holds certifications to that effect, issued by the three spheres of government. Thus, under the terms of the aforementioned article, the appellant enjoys tax immunity,” she wrote.
Source: TJSP
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