Brazil’s Supreme Court Rules Out ITCMD on Donations from Abroad

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 (General Repercussion Topic 825). Despite the precedent having been established since 2021, several state tax authorities continued to assess taxpayers based on Constitutional Amendment No. 132/2023, creating legal uncertainty.

The new decision reinforces legal certainty and directly impacts taxpayers who receive international donations.