New rules for ITD in the State of Rio de Janeiro in 2018

The Official Gazette of the State of Rio de Janeiro, of Nov-17-2017, brought the publication of the Law 7,786 amending some rules that deal with Estate and Gift Tax (Imposto sobre a Transmissão "Causa Mortis" e por Doação de quaisquer Bens ou Direitos - ITD), whose highlights are:

The exemption from ITD, comprehending the transmission of Estate to individuals, if the sum of its value does not exceed the equivalent to 60,000 Ufir-RJ (previously, the limit was 100,000 Ufir-RJ).

New possibilities for exemption were added:

• donation or "Causa Mortis" transmission to individuals of a single Estate located in low-income communities, as the Executive Branch should regulate.
• "Causa Mortis" transmission or donation to private law foundations headquartered at the State of Rio de Janeiro, and to associations of social assistance, health, and education, or those maintaining activities at least in one of the mentioned subjects in subsections of Article 3, of Law 5,501/2009, regardless the certification, including institutions with no financing economic purpose and those dedicated to establishment of funds for financing exempt institutions or their activities.

The new rates as of Jan-01-2018 are:

• 4.0%, for values up to 70,000 Ufir-RJ;
• 4.5%, for values over than 70,000 Ufir-RJ and up to 100,000 Ufir-RJ;
• 5.0%, for values over than 100,000 Ufir-RJ and up to 200,000 Ufir-RJ;
• 6%, for values over than 200,000 Ufir-RJ up to 300,000 Ufir-RJ;
• 7%, for values over than 300,000 Ufir-RJ and up to 400,000 Ufir-RJ;
• 8% for values over than 400,000 Ufir-RJ.