DA SILVA AGROINMUEBLES S.A.

Da Silva Agroinmuebles is a real estate company with over 35 years in the market, specialized in the sector of agriculture and livestock raising.

Federal Taxes

Effective July 1st, 2007 the tax known as IRA (”tax on agricultural income”) was abrogated, and a new tax was created under the name IRAE (”income tax on economic activities”)

  1. IRAE: This tax applies to agricultural activities intended for obtaining primary products, from vegetables or animals. The concept includes disposal of fixed assets, as well as agricultural services provided by producers themselves, and activities relative to pasturage, sharecropping, and the like when carried out on a regular basis as a permanent activity, and also if accidental or provisional. The IRAE tax applies to corporations as mandatory. Other entities may opt to abide by the IMEBA tax (relative to the transfer of rural agricultural properties) regulations as long as their income does not exceed UI 2,000,000 and the size of their property is up to 1250 Coneat Ha. Expenses corresponding to the activity may be deducted when duly documented. DISPOSAL OF RURAL REAL ESTATE PROPERTIES. Income derived from the sale of real estate and/or agricultural and livestock establishments is subject to the IRAE tax.A) Real estate property purchased before July 1st, 2007
    A1) Companies: Income 6 % x 25 % (IRAE) = 1.5 % of selling price.
    A2) Natural Persons: Income 15 % x 12 % = 1.8 % of selling price.

    B) Real estate property purchased after July 1st, 2007
    Selling price - Purchasing price (adjusted to UI) = Income
    B1) Companies: 25 % of income.
    B2) Natural Persons: 12 % of income.

    Forestry: Income derived from forestry exploitation (Law Nr. 15939) is not taken into consideration for the purposes of the “IRAE” tax or other taxes that may be defined in the future.

    Rate: The tax rate is 25 % of fiscal income.

  2. Property Tax (”Impuesto al Patrimonio”): Since the year 2001, companies in the fields of agricultural and livestock-raising are exempt from the property tax relative to lands. As of July 1st, 2007, the property tax became applicable to companies in any of the following conditions:
    A) Resident entities whose net worth is represented by bearer securities.
    B) Non-resident entities except for the case of natural persons.
    When participation in the net worth is nominative but holders are not natural persons, such nominative participation will be considered as issued to the bearer.[/lang_en]