By Ana Caroline Ferreira e Raphael Scheffer Lima
The Paraná State Legislative Assembly is currently reviewing Bill No. 730/2024, which (among other changes) proposes the implementation of progressive rates for the Tax on Transfer “Causa Mortis” and Donation of Any Assets or Rights (ITCMD) in the state.
Constitutional Amendment No. 132/2023, approved on December 20, 2023, had already mandated the progressivity of the ITCMD as part of the tax reform. However, the current legislation in Paraná (Law No. 18,573/2015), which regulates the tax, still stipulates a flat rate of 4%.
According to the text of the bill, the progressive rates would be applied as follows:
- 2% on the portion of the tax base up to 1,000 UPF/PR (Fiscal Standard Units of Paraná);
- 4% on the portion exceeding 1,000 UPF/PR, up to 5,000 UPF/PR;
- 6% on the portion exceeding 5,000 UPF/PR, up to 35,000 UPF/PR;
- 8% on the portion exceeding 35,000 UPF/PR.
- As per SEFA Resolution 1,015, one (1) UPF is equivalent to BRL 138.95 for October 2024.
The bill has not yet been approved and remains subject to changes during its legislative process. If approved, the new rate regime will take effect in the fiscal year following the law’s publication, with a minimum implementation period of 90 days.
According to the bill, the progressive ITCMD rates would begin to apply as of May 1, 2025.
This topic is highly relevant for those planning or in the process of conducting studies and implementing estate and succession planning. The Tax Law team at Marins Bertoldi is closely monitoring developments related to this bill and is available to clarify any questions and provide guidance tailored to each case’s specific circumstances.
