12/03/2025
In a recent decision, the Superior Court of Justice (“STJ”), while analyzing a case involving the calculation of the Inheritance and Gift Tax (“ITCMD”), ruled that the state tax authority may revalue real estate assets that comprise the legal entity’s patrimony to determine the market value of the corporate shareholding.
The case that originated the decision was a writ of mandamus aiming to invalidate the assessment of corporate shares carried out by the Mato Grosso State Tax Authority, in which the book values of the real estate were disregarded, and market values were assigned for ITCMD calculation purposes.
Upon analyzing the merits, the STJ determined that the tax base is the market value of the assets. Therefore, to determine the value of the corporate shares, the market values of the real estate assets comprising the company’s patrimony must be considered, and not just their book value.
This decision is not yet final and binding, but it should serve as a warning to taxpayers with companies holding real estate assets, as the Superior Court’s understanding may result in a substantial increase in ITCMD in the event of a donation or succession of corporate shares.
Our Tax team is available to provide clarifications and guidance on this matter.
Co-authored by: Phillipe da Cruz Silva
