ECA Digital in schools: the risk is not in technology, but in the lack of governance

Complementary Law 227/2026 reshaped the framework of ITCMD (State Tax on Inheritances and Donations) in Brazil, and its impact on estate and wealth‑holding structures runs deeper than it may seem at first glance.

At the federal level, the STJ (Brazilian Superior Court of Justice) has unanimously held, on two separate occasions, that transferring fund units at cost does not constitute a taxable disposal for income tax purposes. The Federal Revenue Service, however, maintains the opposite view, as stated in Cosit Ruling 21/2024, which has led administrators to automatically withhold IRRF (Withholding Income Tax) even in situations protected by law.

Regarding ITCMD, Complementary Law 227/2026 introduced mandatory progressive rates, adopted fair market value as the basis for taxing the transfer of fund units, and required the aggregation of donations between the same donor‑donee pair, effectively ending the viability of donation‑splitting strategies. Trusts and offshore entities are now expressly included within the states’ taxing authority.

In this carousel, we examine what the law establishes, how it interacts with STJ case law and the concrete implications for companies and families with significant wealth‑holding structures.