Deadline for updating the value of properties with a reduction in Income Tax ends on December 16th

The determination is provided for in Law 14,973/24, which was sanctioned on September 16 of this year. Under the new rules, individuals who adhere to updating the value of properties and declaring them in Income Tax will pay a definitive rate of 4% on the difference. On the other hand, without this reduction, the rates vary between 15% and 22.5%.

According to the deputy director of the OAB/GO Tax Law Commission, Guilherme Di Ferreira, the advantage of the taxpayer making this update is the fact that there will be a reduction in the rate. Furthermore, he highlights that this prevents the Federal Revenue Service from tracing an act of infraction so that the taxpayer can regularize it. However, he lists some points that need attention.

“The first point is the deadline for regularization, which ends on December 16, 2024. The second point is in relation to the value of the property. It is recommended that the taxpayer hire a professional to evaluate the property and, thus, obtain the real market value of the property. Third point is to evaluate the cost/benefit”, he advises.

“If this property is to be sold in the medium or long term, it may not be worth making this update now. But, if the property is sold immediately, the ideal is for him to carry out this regularization now. Finally, it is to ensure that the tax payment is made on time, to avoid paying a fine”, adds Di Ferreira.

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What are the differences?

Currently, when an individual sells a property, they pay 15% to 22.5% Income Tax on the appreciation of that asset. The incidence of this rate is calculated on the difference between the purchase and sale value, which is the capital gain recorded in the period.

According to the new rule, individuals will pay 4% on the property’s appreciation, while legal entities will pay 6% Income Tax and 4% Social Contribution on Net Profit (CSLL). However, taxpayers must make this payment by the 16th of this month.

If they choose to do so, they may pay a lower amount of tax when the asset is actually traded in the future, which will depend on the time between the update and the sale.

Declaration of Option to Update Real Estate Assets

To update, the property owner must present the Declaration of Option to Update Real Estate Assets (Dabim), available on the Federal Revenue website, in the Virtual Service Center (e-CAC).

It is worth noting that the collection of taxes on profits obtained from future sales will take into account the proportional time elapsed since the update. The rate starts at 0% for disposals carried out within 36 months and gradually increases to 100% after 180 months.