The First Panel of Brazil’s Supremo Tribunal Federal (STF) reached a majority decision recognizing the unconstitutionality of the levy of the Tax on Inheritance and Gifts (ITCMD) on donations originating from abroad. The central rationale was the absence of a federal complementary law regulating the matter—an understanding already consolidated in RE 851,108/2021...

The Second Panel of Brazil’s Superior Tribunal de Justiça (STJ), in Special Appeal No. 2,139,412 – MT, held that the Tax on Inheritance and Gifts (ITCMD) must be calculated based on the market value of real estate contributed to a holding company, rather than on the book value recorded in the balance sheet (net equity)...

In a recent decision (Special Appeal No. 1,982,730/SP), Brazil’s Superior Tribunal de Justiça (STJ) reaffirmed the understanding that the quotas held by the sole shareholder of a Single-Member Limited Liability Company may be seized to satisfy personal debts, as they form part of the shareholder’s assets. The sole shareholder, as in multi-member companies, exercises typical corporate rights...

Brazil’s Supremo Tribunal Federal (STF) has established the understanding that Personal Income Tax (IRPF) does not apply to the advancement of inheritance (antecipação de legítima), that is, the lifetime transfer of assets from an ascendant to their heirs. This is because, in such transactions, there is no increase in wealth for the donor...

Brazil’s Supremo Tribunal Federal (STF), in Extraordinary Appeal No. 1,363,013 (originating from the State of Rio de Janeiro), recently held that amounts received by heirs from PGBL (Free Benefit Generating Plan) and VGBL (Life Benefit Generating Plan) are not subject to the levy of ITCMD. The Court found that...