Court denies income tax exemption to real estate funds

The Attorney General of the National Treasury (PGFN) survey shows that 22 cases were filed, and there are 12 sentences, all unfavourable to the sector.

They claim to be entitled to the benefit on the gain obtained with shares in other funds

By: SiiLA News

07/21/2021

Real estate investment funds failed to implement an argument that gained strength during the pandemic: the right to exemption from Income Tax on gains obtained from the sale of shares in other similar funds. The Attorney General of the National Treasury (PGFN) survey shows that 22 cases were filed, and there are 12 sentences, all unfavourable to the sector.

The question became more recurrent in the pandemic because these funds decided to buy shares that were undervalued and, with the resumption of the real estate market, the profit obtained would be taxed. The Internal Revenue Service charges 20% Income Tax on capital gains, based on Consultation Solution No. 181, edited by the General Taxation Coordination (Cosit) in 2014.

Real estate funds hit a record in 2020, and the movement tends to grow this year. Last year, according to B3, the total volume traded was R$ 53.9 billion, representing a growth of 67% compared to 2019. This year, until June, it reached R$ 35.6 billion.

Read full story (in Portuguese).

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