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IntermediateBrazilian REITs · Lesson I5.3 · Module I5

How to report REITs on the annual tax return

Module I5: Income tax for unitholders

11 slides~5 minquiz at the end

In this lesson

  • Assets and Rights at cost
  • The year's exempt income
  • Variable income and the new minimum tax
See the slides
Calculator next to an open notebook and a mechanical pencil

Brazilian REITs · Lesson I5.3

Reporting REITs: three sections, three numbers

What you own, what you received and what you sold.

The return map

Each item in its section

  1. Assets and Rightsthe shares you held on Dec 31, at cost
  2. Exempt Incomewhat the fund paid during the year
  3. Variable Incomeeach month's gain or loss on sales, plus DARFs

Sections of Brazil's IRPF tax return program (Receita Federal).

Section 1 · Assets and Rights

The value is what you paid

300shares on Dec 31×R$ 98average price=R$ 29,400reported

Law 9,250/1995, art. 25, § 2: assets are reported at acquisition cost.

The misconception

Today's market price stays out

Acquisition cost

R$ 29,400

  • 300 × R$ 98 average price

Dec 31 market price

R$ 33,000

  • 300 × R$ 110 on the market
  • Appreciation only shows up when you sell

Inside the entry

What goes into Assets and Rights

Typereal estate fund (FII) CNPJthe fund's tax ID, not the manager's Description“300 shares of fund X” On Dec 31R$ 29,400
  • broker's annual statement
  • trade notes
  • your average price

Section 2 · Exempt Income

What hit your account during the year

300 shares×R$ 0.75a month=R$ 225a month
R$ 225×12 months=R$ 2,700exempt

Exempt only if the fund and you meet lesson I5.1's conditions. The income statement shows the total.

New from calendar year 2026

Minimum tax on high earners

R$ 600k

of income a year: above that, a minimum tax applies

Income from listed REITs with 100 or more shareholders stays out of that math. It debuts on the 2027 return.

Law 15,270/2025 (Law 9,250/1995, art. 16-A).

Remember this

Three ideas from this lesson

  1. Assets at costQuantity × average price, with the fund's CNPJ. Never the market price.
  2. Distributions as exemptThe total the fund paid in the year, from the statement.
  3. Sales in variable incomeEach month's gain or loss, with the DARFs paid.

Quick quiz · 1 of 2

How do REIT shares go into Assets and Rights?

See answer

Acquisition cost. Quantity × average price paid. The market price stays out.

Quick quiz · 2 of 2

You had R$ 29,400 and bought 100 more shares at R$ 110. What do you report?

See answer

R$ 29,400 + 100 × R$ 110 = R$ 40,400, the cost of all 400 shares.

Lesson complete

Next lesson

A1.1Advanced · Lesson A1.1Why interest rates move the share priceThe fraction linking Treasury yields to your share price.Continue

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Image credits
  • PNW Production · Pexels · Pexels License — Pexels
  • Luiz Pantoja · Wikimedia Commons · CC BY 2.0 — Wikimedia Commons

Educational content, written for learners. Not investment advice.