NT, ZAP //
The change refers to the exemption granted to those with a disability equal to or greater than 60% and comes after several defeats in lawsuits filed by cancer patients against the Federal Revenue.
The Tax and Customs Authority (AT) changed its understanding of the exemption from the Single Circulation Tax (IUC) attributed to people with a disability equal to or greater than 60%, now allowing many taxpayers maintain the tax benefit even after a medical reassessment that reduces the degree of disability below this limit.
The new guidance, released this Thursday through a circular letter, comes after several defeats by the Tax Authorities in courtespecially in lawsuits filed by cancer patients. The Treasury now applies the so-called “principle of most favorable treatment”, already adopted previously in Income Tax, recognizing that taxpayers can continue to benefit from the exemption until the next medical reassessment.
In practice, this means that people whose disability has been reviewed below 60% do not automatically lose the right to exemption of the IUC, as was the case until now. Furthermore, anyone who paid taxes unduly in the last four years may request a refund of the amounts paid, says the .
However, the application of this rule depends on a determining factor: the vehicle registration date. The AT reminds that the IUC is due annually on the “birthday” of the vehicle’s license plate, which is the relevant date to check whether the taxpayer meets the necessary conditions to benefit from the exemption. If the registration date occurs before the new medical reassessment, the taxpayer will still be able to benefit from the exemption in that specific year, only losing it in the following period.
Unlike the IRS, where there is a transitional regime created by the 2024 State Budget to avoid abrupt losses of income, in IUC there will be no adaptation phase. Thus, when the right to exemption ends, the taxpayer will immediately start paying the tax in full.
The IRS also clarifies that taxpayers who previously lost their exemption due to medical reassessments will now be able to request a review of their tax assessments for the last four years. The request must invoke “error attributable to the services”a legal basis that will allow you to claim a refund of tax paid unduly.
The new interpretation represents a relevant change in the tax protection of people with disabilities, bringing the IUC regime closer to the understanding already consolidated by the courts in matters of tax benefits associated with disability.
