Post by account_disabled on Mar 6, 2024 6:35:01 GMT
On December Congress enacted Amendment to the Constitution No. which aims to promote structural changes in the National Tax System with the advent of the Value Added Tax VAT under the dual format with gradual replacement of five taxes by the Contribution on Goods and Services CBS and the Tax on Goods and Services IBS.
In addition to these profound changes changes to constitutional provisions also affect other taxes that also impact succession and tax planning which aim to organize and transfer assets and rights from one holder to another as is the case of ITCMD which It is the responsibility of the States and the Federal District and also affects donations and causa mortis transmissions .
Among the main changes to the ITCMD a constitutional B2B Email List provision was included in EC nº that authorizes the States and the Federal District to charge state tax on donations on goods and rights whose donor resides or is domiciled abroad and causa mortis transfers of goods located abroad which according to the current wording would require the publication of a specific complementary federal law article item III paragraphs “a” and “b” .
At this point according to the wording of the EC the Complementary Law became essential for defining tax jurisdiction as it remained defined as follows:
“Art. . Until a complementary law regulates the provisions of art. º III of the Federal Constitution the tax levied in the cases referred to in the aforementioned provision will compete:
I – in relation to real estate and respective rights to the State in which the property is located or to the Federal District;
II – if the donor is domiciled or resides abroad:
a to the State where the donee is domiciled or to the Federal District;
b if the donee is domiciled or resides abroad to the State in which the asset is located or to the Federal District;
III – in relation to the assets of the deceased even if located abroad to the State where he was domiciled or if domiciled or resident abroad where the successor or legatee is domiciled or to the Federal District.
In addition to these profound changes changes to constitutional provisions also affect other taxes that also impact succession and tax planning which aim to organize and transfer assets and rights from one holder to another as is the case of ITCMD which It is the responsibility of the States and the Federal District and also affects donations and causa mortis transmissions .
Among the main changes to the ITCMD a constitutional B2B Email List provision was included in EC nº that authorizes the States and the Federal District to charge state tax on donations on goods and rights whose donor resides or is domiciled abroad and causa mortis transfers of goods located abroad which according to the current wording would require the publication of a specific complementary federal law article item III paragraphs “a” and “b” .
At this point according to the wording of the EC the Complementary Law became essential for defining tax jurisdiction as it remained defined as follows:
“Art. . Until a complementary law regulates the provisions of art. º III of the Federal Constitution the tax levied in the cases referred to in the aforementioned provision will compete:
I – in relation to real estate and respective rights to the State in which the property is located or to the Federal District;
II – if the donor is domiciled or resides abroad:
a to the State where the donee is domiciled or to the Federal District;
b if the donee is domiciled or resides abroad to the State in which the asset is located or to the Federal District;
III – in relation to the assets of the deceased even if located abroad to the State where he was domiciled or if domiciled or resident abroad where the successor or legatee is domiciled or to the Federal District.