By Kaled Halat for Gazeta News
Just like every year, it’s time for farmers to submit their income tax return for the previous year so that the government can make its calculations and see whether or not they need to pay tax on this income. Anyone who owns rural property knows that they have to submit their declaration every year and indicate the status of the property they own, i.e. whether it remains the same size, whether there have been any changes that need to be reported, whether the land has yielded the same results as the previous year, etc.; this is called ITR, the Tax on Rural Territorial Property. Curiously, this tax is as old as mankind’s existence on this planet. As soon as man began to take possession of objects and, later, places, he understood that he had to charge this amount to others so that they could occupy part of his area. Thus, fiefdoms and kingdoms were formed. Unlike today, a large part of the income of those who owned land came from collecting these fees, paid in money, animals or grain (corn, wheat, etc.). With the formal establishment of the states as we know them today, they began to charge landowners an annual tax, which gave rise to the ITR that exists today.
The Rural Property Tax Return (DITR) is compulsory for individuals or legal entities that own rural property, have beneficial ownership or possess it in any capacity, including usufructuary, in addition to those that had possession or ownership of the rural property between January 1, 2023 and the date of submission of the return, which is September 29, 2023. The IRS expects to receive approximately 6 million tax returns this year.
At such times, it is common for there to be animosity towards paying taxes, often because the taxpayer doesn’t know where the money will go. It is important to emphasize that one of the reasons why the ITR was created was to prevent people from becoming large landowners and not making them productive, thus preventing the social function of land, which is to produce food for the entire population, from being fulfilled. We always warn our producer clients that filing is one of their obligations and failure to file or delay in filing will subject the taxpayer to the penalties provided for in tax legislation, including fines and interest on the amount due.
In addition, failure to make the declaration could result in restrictions in the Rural Property Register (Cafir), jeopardizing the property’s regularity before the competent bodies. The Diat value is also of great importance for the eventual calculation of capital gains on the sale of rural property under the terms allowed by Law 9.393/96.
Another frequent question is whether tenants, lessees and partners should also contribute to the ITR. The answer is no. The legal relationship established by lease, lending or partnership contracts is of an obligatory nature. As a result of these contracts, the property is handed over without the intention of transferring full possession; only the partial exercise of use and limited possession is temporarily transferred. Only full possession, without subordination, is a triggering event for ITR, so as full possession does not occur, tenants, lessees and partners are not ITR taxpayers. It is also important to note that there are exceptions, which must be analyzed on a case-by-case basis, including when registering the land with the Receita Federal. And since there is a tax to live with, the best thing is to enjoy the blessed land you have and make it produce, always in a healthy, responsible way and with respect for the environment.
Disponível em: ITR submission: the time has come! – Gazeta News (jornalgazetanews.com.br)