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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29580
Experience:  Taxes, Immigration, Labor Relations
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I (husband) have sent a wire transfer of "donation monies"

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I (husband) have sent a wire transfer of "donation monies" from my Wells Fargo bank account in the amount of $107,500 in U.S. currency to my wife into her bank account in Brasil.
Should arrive in next couple of days. Would I or my wife be subject to a tax from Brasilian Fed or this bank even though it is a gift?

Lev :

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.

Lev :

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 -
Still 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 ?

Lev :

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, account?

Lev and other Tax Specialists are ready to help you
ITCMD is a state tax imposed on the transfer of ownership - regardless if the transfer completed via wire transfer to the bank account or any other way.
But a recent the Court of Appeals decision which confirmed that charging ITCMD tax is illegal when the gift from a donator residing abroad will change the situation - but all aspects are not clear.
Specifically for the state of Santa Catarina - see HERE

<table border="0" cellspacing="0" cellpadding="0">

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%