02/09/2021 – 23:22
Acácio Pinheiro/Brasília Agency
Update will be valid for property purchased by an individual until December 31, 2020
Approved this Thursday (2) by the Chamber of Deputies, the bill that amends Income Tax rules (PL 2337/21) allows the updating of the value of properties purchased by individuals until December 31, 2020 and declared annually.
Today, real estate is held at its original value, and the citizen must pay between 15% and 22.5% tax on the capital gain obtained from the difference between the acquisition value and the sale value.
This update is linked to the prepayment of a 4% capital gain tax. The deadline for joining and paying the tax will be from January 1st to April 29th, 2022.
However, on the taxable amount there will not be the application of reduction factors, as is the case under current legislation. These factors reduce the amount of tax payable over the time elapsed between purchase and sale.
After this update, which is not linked to any sale obligation, the property will have a new purchase price; and normal taxes will be levied on the difference between that amount and the future sale amount.
As for rural properties, the rule applies only to bare land.
The approved text allows the same lower income tax advance system for those residing in the country who have assets abroad and are declared in the adjustment statement for the calendar year 2020.
The rate will be 6% and will apply to updated assets and rights held abroad, such as bank deposits, investments, insurance policies, retirement funds, assets paid in foreign companies, real estate, vehicles, aircraft and vessels.
The updated value must be informed by the financial institution (deposits, investments, etc.), by the company’s balance sheet or by a specialized entity (vehicles, vessels, etc.).
Jewels, precious stones and metals, works of art, antiquities of historical or archaeological value, pets or sporting animals and genetic material from animal reproduction will be excluded.
Fixed Income Funds
On the taxation of fixed income investments, the approved text maintains the regressive rate of 22.5% to 15% or 20% (short term), while the original wording of the project proposed the unification at 15%.
Already the “come-cotas” becomes annual, only in November. Today, this mechanism is used in May and November and implies a reduction in the value of the investor’s share as a tax advance.
If the bill becomes law, closed investment funds will pay Income Tax annually, in the form of the so-called “come-cotas” already applied to open funds.
Closed-end funds are aimed at large investors, who pay income tax only at the time of redemption, while in the “come-quota” system, investors pay in advance, at a 15% rate, the tax on accumulated earnings.
Like the other funds, the “come-cotas” will only take place in November and no longer in May and November.
In the case of earnings accrued until January 1, 2022, the text already determines the payment of 15% until November 30 of the next year.
If the shareholder wants to bring the payment forward to May 31 or installment it in 24 monthly installments, the rate will be 6%. The installments will be readjusted by the Selic rate monthly plus 1% in the month the payment is made.
The investments of financial institutions in certain funds are excluded from these rules, such as:
– real estate investment funds and investment funds in agro-industrial production chains (Fiagro);
– investment funds taxed at 10% constituted exclusively by investors resident or domiciled abroad;
– equity investment funds and investment funds in emerging companies;
– investment funds in participation in infrastructure (FIP-IE) and investment funds in participation in intensive economic production in research, development and innovation (FIP-PD&I);
– credit rights investment funds; and
– investment funds whose non-extendable end will be until December 31, 2022.
The taxation of income tax on transactions carried out by individuals on the stock exchange is now levied on the quarterly calculation of earnings, instead of monthly for the purposes of qualifying for exemption.
Currently, the monthly exemption is for assets sold up to the total value of R$ 20 thousand. With the change, the quarterly exempt amount will be R$ 60 thousand.
Transactions on the stock exchange settled on the same day (day trade) will have an income tax of 15% against the current 20%. The project also ends the residual tax of 0.005% and 1%, used to inform the tax authorities about the existence of these operations.
Another novelty in the approved text is the forecast that companies operating in the multiplication of transgenic seeds are not subject to the limits of deduction of taxable income in the total purchase value of these seeds or in the license of cultivars, which is no longer considered as a royalty.
In addition, the requirement to register contracts with inspection bodies or regulatory agencies will be waived.
goods of small value
The Income Tax exemption ceiling on gains on the sale of small value goods will be increased from R$20,000 to R$35,000. The exemption does not apply to securities traded on organized markets or the sale of shares.
Learn more about the processing of bills
Report – Eduardo Piovesan
Edition – Pierre Triboli