Brazil’s Federal Senate of Brazil has approved PLP 108/2025, which significantly changes the method for calculating ITCMD (tax on gifts and inheritances).
What Changes?
The main change is twofold: the tax will become progressive and will be calculated based on the market value of the assets—rather than on their book value. In practice, this may significantly increase the cost of wealth transfers, particularly in family structures or holding companies.
The tax will now take into account the company’s actual economic value , including:
• Tangible assets, such as real estate, vehicles, and equity interests;
• Intangible assets, such as goodwill and business value. goodwill.
As a result, ITCMD will no longer reflect merely accounting figures but will instead represent the effective market value of the business—which, in most cases, will substantially increase the taxable base.
Practical Example
Consider a holding company that owns a single real estate asset contributed years ago at a historical value of BRL 200,000. Today, that same asset is worth BRL 900,000 at market value.
Scenario
Tax Base
ITCMD (4%)
Before
R$ 200.000
R$ 8.000
Under the new rule
R$ 900.000
R$ 36.000
What’s Next?
The bill will now return to the Chamber of Deputies for further review and, subsequently, to presidential sanction.
Even so, the text approved by the Senate already signals a trend toward stricter taxation of inheritances and gifts in Brazil.
For this reason, assessing the impact of the change and anticipating succession planning measures —such as the formation of holding companies or the formalization of gifts—may generate significant tax savings and ensure greater asset protection before the new rule comes into effect.