Law No. 14,973\/2024 allows individuals and legal entities to update the value of real estate assets, as follows:<\/p>\n
INDIVIDUALS: Update the real estate assets to market value, subject to payment of Individual Income Tax (IRPF) at a rate of 4% on the difference between the market value and the declared acquisition cost.<\/p>\n
LEGAL ENTITIES: Update the real estate assets to market value, subject to payment of Corporate Income Tax (IRPJ) at a rate of 6%, and Social Contribution on Net Profit (CSLL) at a rate of 4% on the difference between the market value and the declared acquisition cost.
\nThe updated value shall not be treated as a depreciation expense for tax purposes.<\/p>\n
Both individuals and legal entities must pay the taxes within 90 days of the publication of Law 14.973\/2024 \u2013 i.e., by 15\/12\/2024.<\/p>\n
Federal Revenue Service will regulate Law 14,973\/2024.<\/p>\n
<\/p>\n
CAPITAL GAIN IN CASE OF A FUTURE SALE:<\/p>\n
The longer the time between the update of the real estate value and its sale, the lower the tax on capital gains. The calculation follows this formula:<\/p>\n
Capital gain = sale value – [CAA + (DTA x %)], where CAA is the original cost of the property, and DTA is the updated value, adjusted by a rate ranging from 8% to 100%, depending on the time elapsed since the update.<\/p>\n
However, the tax reduction will only occur if the sale is made after 3 years from the asset’s value update. After this period, progressive rates (from 8% to 100%) will reduce the tax base, resulting in tax savings for the taxpayer.<\/p>\n","protected":false},"excerpt":{"rendered":"
Law No. 14,973\/2024 allows individuals and legal entities to update the value of real estate assets, as follows: INDIVIDUALS: Update the real estate assets to market value, subject to payment of Individual Income Tax (IRPF) at a rate of 4% on the difference between the market value and the declared acquisition cost. LEGAL ENTITIES: Update […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[151],"tags":[],"class_list":["post-4181","post","type-post","status-publish","format-standard","hentry","category-bulletin"],"_links":{"self":[{"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/posts\/4181"}],"collection":[{"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/comments?post=4181"}],"version-history":[{"count":1,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/posts\/4181\/revisions"}],"predecessor-version":[{"id":4182,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/posts\/4181\/revisions\/4182"}],"wp:attachment":[{"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/media?parent=4181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/categories?post=4181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ctpadv.com.br\/en\/wp-json\/wp\/v2\/tags?post=4181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}