This week, the House of Representatives completed voting on the second regulatory bill for the Tax Reform (PLP 108/24). The main text was approved in August; however, voting continued due to discussions on amendments and highlights. PLP 108/24 provides important guidelines for the administration of the Goods and Services Tax (IBS) Management Committee, establishes rules for the Inheritance and Donation Tax (ITCMD), and includes other significant changes.

Below are the key points approved by the House of Representatives this week:

• Wealth Tax (IGF): The amendment proposing the creation of a Wealth Tax, taxing fortunes above R$ 10 million, was rejected;
• Public Policy Evaluation by the Management Committee: The requirement for the Management Committee to evaluate the effectiveness and efficiency of social, environmental, and economic policies every five years, including IBS special regimes, was upheld;
• ITCMD on Private Pension (VGBL and PGBL): The requirement to levy ITCMD on benefits to beneficiaries in the event of the account holder’s death for private pension plans (VGBL or PGBL) was removed.Notably, the applicability of ITCMD on PGBL and VGBL remains under debate among taxpayers and is currently being evaluated by the STF under general repercussion (Theme 1214). Taxpayers argue that, by their nature, these investments should not be included in the inheritance estate and, therefore, should not be subject to ITCMD.
• Disproportionate Profit Distribution: The provision to impose ITCMD on disproportionate profit distribution among partners or shareholders without justifiable cause, particularly for linked beneficiaries, was removed;
• Real Estate Transfer Tax (ITBI): The proposal excluded the amendment that would change the ITBI tax base, maintaining the calculation based on the greater of either the taxable or transfer value for the tax assessment. Currently, only the taxable value is used as the tax base. Thus, the project enables taxation based on a price table rather than the actual sale value.

The Complementary Bill 108/24 will be forwarded to the Federal Senate, where it will go through review and voting. Senators will analyze the provisions contained in the bill and may propose modifications before its approval.

The Tax Planning Department at Marins Bertoldi Advogados is closely monitoring developments on this topic and remains available to clarify any questions and provide further insights tailored to each company’s specific needs.