São Paulo will have the lowest inheritance tax in all of Brazil with new bill sanctioned
If sanctioned, Bill 511 of 2020, approved by the Legislative Assembly of São Paulo, may leave the state with the lowest ITCMD, the inheritance and donation tax, in the country. The tax rates would fall from 4% to 0.5% (donations) and 1% (death transfers).
A survey by Sigaud Advogados shows that the average tax rate applied throughout the country is 4%.
But some states apply progressive rates, ranging from the exemption and 1% to 8%.
Although the Secretary of Finance and Planning of the State of São Paulo, Felipe Salto, has, in an interview with Valor, considered an “absurd” reduction in the state tax rates approved by the state deputies, experts say it would be a good initiative, even more in a time of crisis, and bet on its sanction.
In a statement, the Government of São Paulo informs that it has not yet received the bill. And that as soon as the Legislative Assembly forwards it to the Executive Branch, it will have 15 days to make a legal and economic feasibility analysis of the proposal.
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