The Brazilian Federal Supreme Court (STF) established a period of one year for the National Congress to issue supplementary law with general terms to calculate Tax on Mortis Causa Succession and Donation (ITCMD).
At least three projects on inheritance abroad are under joint processing in the Chamber of Deputies. With the Supreme Court’s decision, it is expected that a bill is completed quicker.
The period of 12 months starts from the moment the minutes of the decision of Direct Action for the Declaration of Unconstitutionality by Omission (ADO) 67 are published, drafted by the attorney general, Augusto Aras.
The STF Court reported that there is legislative exclusion in the regulation of the article referring to the rules so States are able to introduce the collection of the tax when the donor is domiciled or resides abroad or if the person deceased had assets, had resided, was domiciled or had probate process conducted abroad.
Written by Marcos Ferreira, Content Assistant at Drummond Advisors