When does the Tax Reform come into effect?

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The Tax Reform will come into effect gradually. To this end, Constitutional Amendment No. 132/2023 stipulated a transition rule, which can be summarized as follows:

When we think about the real estate market, there are several activities that make it up: buying and selling properties, renting , civil construction , leasing, intermediation, investments , incorporation , subdivision , administration and other activities that subsidize and complete this very important sector.

To demonstrate the incidence of consumption taxation in accurate mobile phone number list real estate activities, let's use the construction industry as an example: ICMS is levied on the acquisition of materials and freight charged for the transportation of these goods. On the other hand, ISS/ISSQN is levied on the provision of construction services.

See, all activities subsequent to the construction of a property necessarily depend on its construction.

In other words, directly or indirectly, when dealing with real estate activities, we will also deal with taxes levied on consumption.

Therefore, changes in consumption taxation will have a great influence on the real estate sector .

And because it is such a relevant sector for the Brazilian economy, the taxation of transactions involving real estate gained, in the Tax Reform, a specific taxation regime .

But, before we discuss the specific regime, let's look at the facts that generate these taxes.

Hypotheses of incidence of IBS and CBS in real estate transactions
The hypothesis of incidence of a tax is the abstract situation described in the law that will be subject to taxation when the triggering event occurs, that is, when that hypothetical situation occurs in the real world.

According to the General Law of IBS and CBS, whose project has already been approved by the Chamber of Deputies, but is still being processed in the Federal Senate, the IBS and CBS will be levied on the following operations: