The Donation and Inheritace Tax, ITCMD or the tax on causa mortis transmission and donation, is a state tax required in Brazil which applies in the causa mortis transfer and donation of any property or rights.

The ITCMD is provided for in article 155, I of the Federal Constitution and article 35 of the National Tax Code. However, supplementary state laws specify the tax basis, rate, exemptions, payment methods, among others.

For example, in Sao Paulo state the rate is 4%, in Minas Gerais, 5%. Rio de Janeiro has a progressive table that varies from 4% to 8%.

Thus, whenever there is a transfer of property or rights due to death or donation, this tax will be levied, and the professional must understand not only federal legislation but also state legislation, as there are variations between states. In case of succession and/or donation, consult D Capuano to learn more about taxes and tax planning.