Family Asset Holding: Analysis of the tax aspects of an Individual vs. Legal Entity using the Presumed Profit form of taxation

• DOI: https://doi.org/10.22533/at.ed.216532520024

• Palavras-chave: Family Asset Holding, Tax Planning, Individual Income Tax Return, Rental Taxes, Tax Reform.

• Keywords: Family Asset Holding, Tax Planning, Individual Income Tax Return, Rental Taxes, Tax Reform.

• Abstract:

  Tax planning is becoming more important every day, and one of the possibilities for carrying it out, especially in cases where real estate is included, is through a family holding company. The family holding company seeks to reduce taxes by transferring real estate to a CNPJ, and thus taxing all income within it. The aim of this study was to analyze the contribution of setting up a family holding company in order to reduce the taxes levied on rental income. In order to achieve what was proposed, descriptive research was carried out, outlined as a case study, with a qualitative approach. In this study, an analysis was made based on an individual's income tax return. Firstly, the number of properties owned by the individual was mapped, along with the amount received from each of them, totaling a monthly amount. This amount was first analyzed taking into account taxation on an annual basis, initially considering the amount of taxes paid based on the current IRPF table, and then calculated based on the taxation in force for legal entities. In addition, a simulation was carried out considering the information available to date on the tax reform to check how much would be paid if it came into force, and whether it would be feasible to adopt a holding company in this scenario. The results showed that setting up a holding company significantly helps to reduce taxation on rental income, and is one of the possibilities for reducing the payment of these taxes. Future studies could include a careful analysis based on the tax reform, analyzing the same context in a future scenario.