Special Regime for Updating and Regularizing Assets

Law No. 15.265/2025 was published, establishing the Special Regime for Updating and Regularizing Assets (“REARP”), which allows: (i) updating the value of movable and immovable property, with preferential taxation on the updated amount; (ii) regularizing assets and rights that were not declared or were declared incorrectly, with the payment of tax and fine.

Updating the value of movable and immovable property.

Individuals and legal entities that own movable property (land, water, and air motor vehicles subject to public registration) and real estate located in Brazil or abroad that were acquired with legally sourced funds up to December 31, 2024, may participate in the REARP (Special Regime for the Regularization of Assets and Real Estate).

For individuals, the difference between the updated value of the asset and the acquisition cost declared in the Annual Income Tax Return (DAA) will be taxed at a rate of 4%. For legal entities, the difference will be taxed at a rate of 4.8% for Corporate Income Tax (IRPJ) and 3.2% for Social Contribution on Net Profit (CSLL), and the updated values ​​cannot be considered as depreciation expenses for tax purposes.

The sale of real estate updated by the REARP (Special Regime for the Regularization of Real Estate Assets) within the first five years, and of movable property within the first two years after joining the program, will result in the disregard of the effects of the update and the full collection of capital gains tax based on the original acquisition cost, with deduction of the amount previously collected, except in cases of transfer due to death or divorce.

Regularization of resources, assets and rights

The legislation allows for the regularization of, among other things, movable and immovable property, financial assets, credit operations, equity participation in companies, and intangible assets acquired up to December 31, 2021, but which have been omitted or declared incorrectly.

The value of the regularized assets will be considered an increase in net worth and taxed at a fixed rate of 15%, plus a penalty equal to the tax amount.

Joining REARP

Adherence to REARP, for the purpose of updating and/or regularizing assets or rights, must be carried out within 90 days from the date of publication of Law 15.265/2025 (November 21, 2025), with the submission of the respective declaration and payment of applicable taxes and fines in a single installment or in up to 36 equal, monthly and successive installments.

The formal conditions for adhering to REARP will still be regulated by the Brazilian Federal Revenue Service.