Have a Tax Question? Ask a Tax Expert
Hi and welcome to our site!The only tax levied in Brazil on gifts is the ITCMD (Imposto sobre Transmissão Causa Mortis e Doação de Quaisquer Bens ou Direitos) tax. ITCMD is a state tax imposed on the transfer of ownership of goods and rights upon gift. ITCMD rates vary according to the local laws of the State (up to 8%). For instance, in the State of São Paulo - the rate is 4%. ITCMD is usually paid by the recipient of the gift.
This rate applies to amounts above certain level. São Paulo for instance allows up to BRL48,000 donations during 12-month period without ITCMD.
Just recently - in the case of the gift from a donator resident abroad, the Court of Appeals in São Paulo (TJ-SP) confirmed the opinion that charging such tax is illegal.See more details in this article - http://www.lexology.com/library/detail.aspx?g=2afc71fe-908b-444c-b427-6889d213b9ebStill we do not know official response from taxing authorities.
So, since our marriage is registered in Brasil and US and these donation monies wired are most likely non-taxable by Brasilian Government...does the amount have a determining factor $107,500 (U.S.= R$235,640 ?
Because that is Brazilian tax - the amount is determined in Brazilian curency. ITCMD is NOT imposed by Brazilian Government - this is tax on the state level and regulated by state laws.As long as you are married - it doesn't matter if the marriage is registered in Brazil or in the US or both.
Do you know the state of Santa Catarina Law relative to amount of around R$235,640 as donation monies wired into Brasilian account?
Do you know the ITCMD law imposed on donation wire transfers into the State of Santa Catarina, BR...bank account?
Up to R $ 20,000 - de R$ 20.000,01 a R$ 50.000 - R $ 20,000.01 to R $ 50,000 - de R$ 50.000,01 a R$ 150.000 - R $ 50,000.01 to $ 150,000 - Acima de R$ 150.000 - Over $ 150,000 Parente colateral e não parente Collateral and not relative
1% 1% 3% 3% 5% 5% 7% 7% 8% 8%