COSIT Consultation Solution No. 75

“The existence of an expectation of a right to the assets of the Trust is sufficient to characterize the condition of beneficiary.”

Consultation Solution Cosit No. 75, published on May 6, 2025, clarified that a potential beneficiary of a Trust established abroad by an offshore company , with assets “intended to safeguard descendants and to be used only in situations of extreme necessity and not for enrichment or leisure,” must declare and pay taxes on income and capital gains in their Income Tax return.

The Brazilian Federal Revenue Service (RFB) concluded that ” beneficiary status does not depend on the existence of an acquired right to the Trust’s assets. The expectation of a right to the Trust’s assets is sufficient to characterize beneficiary status. “

According to the RFB’s understanding of Article 10 of Law 14.754/2023, during the term of the Trust , income and capital gains related to the assets and rights subject to the Trust will be taxed by the person considered the holder on the date of the taxable event, and, in the case of irrevocable Trusts, this person will be the beneficiary.

Considering that the RFB’s binding guidance deals with irrevocable Trusts , but establishes conditions associated with future and uncertain events, the matter may be subject to litigation, since the mere expectation of a right cannot qualify the beneficiary as a taxpayer.