07/08/2024 – 22:08
The working group for the second regulatory text of the tax reform decided to reinstate the inheritance tax on private pension plans, such as PGBL and VGBL, but providing for a mitigating factor, as anticipated by Estadão. The opinion presented this Monday, the 8th, establishes that investors who remain in the product for more than five years, counting from the date of the contribution, will be exempt from the Tax on Transmission Causa Mortis and Donations (ITCMD).
The objective, according to the deputies, is to prevent individuals from migrating their investments to this type of fund solely for inheritance purposes, with the strategy of circumventing state taxation.
“Asset tax planning in the 21st century: when it’s time to transfer an inheritance, sell everything and invest it in one of the funds to avoid paying taxes. This is a disgrace. See if the middle class does this,” said Luiz Carlos Hauly (Pode-PR), one of the group’s members, pointing out that the practice is adopted by the upper classes.
The assessment was reinforced by Congressman Ivan Valente (PSOL-SP): “PGBL and VGBL are escape routes. At the last minute, they transfer assets to VGBL to avoid paying taxes.” Currently, the maximum tax rate is set at 8%, according to a Senate resolution. Valente advocates, however, that the House increase this ceiling in the future.
At Valente’s request, the deputies also decided that large assets will be taxed at the maximum ITCMD rate. According to the group, the definition of what constitutes “large assets” will be up to the states.
The collection of the tax on PGBL and VGBL was included in the draft of the complementary bill prepared by the Ministry of Finance, as reported by Estadão in June, but was withdrawn after negative repercussions. The subject, however, is of great interest to governors, who administer the tax and, therefore, were interested in the return of this provision.
Some states, such as Minas Gerais, already charge this type of fee, but there is no unified rule nationwide and there are many questions in court.
The deputies’ opinion also specifies, as the Treasury Department predicted in the draft bill, that taxation will only apply to plans aimed at succession planning – that is, those that are of a financial investment nature, and not insurance.
Therefore, any risk coverage will not be taxed, as it is of an insurance nature. Currently, some pension plans have a mixed contract, including an insurance component, such as compensation for death or disability. These compensations would therefore be exempt.
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