With the publication of Decree No. 48,378/21, the Rio de Janeiro City Government created a new ancillary tax obligation for IPTU taxpayers for real estate located in the city. As of this fiscal year 2021, they are required to submit an Annual Statement of Registration Data (DeCAD) for all of their residential and non-residential urban properties by the last business day of June of each fiscal year. The measure aims to create an updated database and facilitate changes in the registration data of properties in the city of Rio de Janeiro, including ownership and addition of built area.

According to article 34 of the National Tax Code (CTN), a IPTU taxpayer is an owner of property, holder of its useful domain, or its owner on any account. Owner means the one who has the option to use, enjoy, and dispose of the property (article 1.228 of the Civil Code). Useful domain covers the rights of holders of rights of tenement, use, and sale, in relation to the tenement building. As for possession, it is understood that only the possessor with animus domini, that is, a definite spirit of dominion, may be a taxpayer of the IPTU. Lessees, for example, do not qualify as taxpayers, since they only hold direct possession of the property, without animus domini. Therefore, in the case of leased properties, the obligation to submit the DeCAD will, as a rule, be assigned to the lessor.

The DeCAD should be delivered electronically in the appropriate form to be made available on the website of the Municipal Department of Finance and Planning. IPTU taxpayers must confirm the following information regarding their property: current real estate registration number, complete address, taxpayer data, clarification regarding their legal relationship with the property, exercise to which the information provided in the DeCAD refers, whether the property is built or not, built area, and nature of use (whether residential or non-residential), including specifying the nature of the specific use of the property and typology/constructive characteristics of the property.

Taxpayers of more than one property may submit a single DeCAD containing all the information on the property owned by them individually. In the event of non-compliance with this ancillary tax obligation, as well as omission, inaccuracy, inadequacy, or falsity in the data entered on the form, the taxpayer shall be subject to the penalties provided for in the applicable municipal legislation.

The Municipal Tax Administration may use the information contained in or arising from the DeCAD to make tax entries. However, the data entered on the form is not presumed to be true, nor is it binding on the administrative authorities, which may continue to use other sources of information for tax purposes.

If it is necessary to rectify an DeCAD already submitted, taxpayers may submit, in the same exercise, a rectifying statement by the last business day of June (same deadline for regular submission of a DeCAD). For prior fiscal years, the rectifying statement may be submitted by October 30 of the fifth fiscal year following the taxable event.

The new decree entered into force on the date of its publication, January 1, 2021. IPTU taxpayers must already be scheduled to make the first DeCAD by June 30, 2021 (last business day of the month). The DeCAD form must be available by March 31, 2021.