With the approval of Law No. 14,973, of September 16, 2024, the government allowed the revaluation of real estate by individuals, with a 4% income tax (IR) rate. Previously, taxpayers could not make the update voluntarily without paying at least a 15% capital gains tax.
Legal entities may also re-evaluate real estate, with a reduced rate of 6% for corporate income tax (IRPJ) and 4% for the social contribution on net profit (CSLL).
Who are the beneficiaries?
- Individuals: real estate already reported in the Annual Income Tax Return (DAA);
- Legal entities: real estate that is part of the company’s permanent assets (i.e. in non-current assets).
How to make the update?
- Deadline: to be defined by the Federal Revenue Service (RFB);
- Tax payment: until December 15, 2024 (90 days after the law’s publication);
- DAA 2025/2024: inclusion of the taxed amounts in the assets and rights section as an additional acquisition cost of the real estate.
What is the tax rule?
- Individuals: 4% IRPF on the capital gains;
- Legal entities: 6% IRPJ and 4% CSLL on the capital gains, with the taxed amounts not being deductible as depreciation expenses.
Our Tax team is available to answer any questions on the subject via email: tax.bluz@baptistaluz.com.br.
