The Special Tax Regime (RET) is a specific fiscal alternative in Brazil that allows real estate developers to replace the payment of Corporate Income Tax (IRPJ), Social Contribution on Net Profit (CSLL), Social Integration Program/Public Servant Heritage Formation Program (PIS/Pasep), and Social Security Financing Contribution (Cofins) with a single tax rate of 4% applied to their monthly revenues.
However, for a developer to be eligible to choose this regime, it is crucial that the company meets various specific conditions to ensure compliance with the following tax and legal requirements:
1. Enrollment in the Electronic Tax Domicile (DTE): Simplifies interaction with the Federal Revenue Service, ensuring that all processes are conducted securely.
2. Allocation of land and the construction associated with the real estate development project: Ensuring that assets are correctly registered and linked to the segregated estate, providing greater legal protection to the process.
3. Registration of the segregated development in the National Register of Legal Entities (CNPJ): Regularizes the operation in the fiscal context by linking it to the event “109 – Real Estate Development Registration – Segregated Estate.”
4. Tax compliance: The company must be up-to-date with all its tax obligations with the Federal Revenue Service, avoiding any outstanding issues.
5. Absence of registration in the Federal Public Sector Delinquent Debtors Registry (CADIN): The company must not have any debts or financial obligations with public agencies.
6. No criminal or administrative sanctions for environmentally harmful conduct: Ensuring that the company is not involved in practices harmful to the environment.
7. A clean record in the National Register of Civil Condemnations for Acts of Administrative Misconduct and Ineligibility: Indicating that the company is not involved in acts of administrative misconduct.
Opting for the RET regime can bring several benefits, such as simplifying tax calculation and payment, reducing the tax burden, improving financial liquidity, and decreasing the bureaucracy involved in fiscal management.
