New Law Signed By Government Creates Rules That Could Reduce Income Tax For Cars By Allowing Vehicle Value Updates In Declarations

Written by Ruth Rodrigues

Published on 05/01/2026 at 10:33

Com nova lei federal que permite atualizar valor de veículos na declaração, brasileiros podem reduzir Imposto de Renda sobre carros antes da venda. Saiba o que muda e quem pode se beneficiar.

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With New Federal Law Allowing Vehicle Value Updates in Declarations, Brazilians Can Reduce Income Tax on Cars Before Sale. Learn What Changes and Who Can Benefit.

A new legislation signed by the federal government promises to change how Brazilians declare their assets in Income Tax.

The change, applicable throughout Brazil, creates the possibility of reducing Income Tax on cars through an official mechanism that allows for updating the value of vehicles registered in the annual declaration.

The novelty was approved because many taxpayers faced high capital gains tax charges when selling their cars, as the declared value often fell significantly below the real market price.

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How Does the REARP Work and Why Can It Reduce Income Tax on Cars?

The signed text establishes the Special Regime for Asset Update and Regularization (REARP).

Through it, owners of assets acquired until December 31, 2024 can update the value of cars, real estate, and other properties.

The main advantage lies in the cost of this update: instead of paying a tax rate of 15% to 22.5% on capital gains at the time of sale, the taxpayer will pay only 4% on the difference between the old value and the updated value.

In practice, the government aims to balance the system: while it offers a way to reduce Income Tax on cars, it also begins to collect immediately with the fixed rate of 4%.

Why Can the Change Help Those Looking to Sell Their Vehicle?

For many Brazilians, selling a car often raises questions about taxation.

Frequently, the declared value at the time of purchase becomes outdated years later, making it seem like there was a significant profit — when, in reality, there wasn’t.

With the REARP, updating this value reduces the difference between the sale price and the declared value, resulting in a lower capital gain and, therefore, less tax to pay.

In other words, updating the declaration before the sale can reduce Income Tax on cars and avoid unpleasant surprises with the tax authorities.

Additionally, since the rate is fixed, the taxpayer can better predict how much they will pay in this regularization.

With new federal law allowing vehicle value updates in declarations, Brazilians can reduce Income Tax on cars before sale. Learn what changes and who can benefit.

Who Can Use the REARP and How to Join

The regime was created for individuals who have declared assets for years and wish to regularize their values. To join, it is necessary to:

Check if the asset was acquired by 12/31/2024.
Consult the current market value of the vehicle.
Calculate the difference between the old value and the updated value.
Pay the tax rate of 4% set by the law.
Include the update in the Income Tax declaration.

The process is optional, but it can be highly advantageous for those planning to sell their car in the coming years.

Source: Vrum

New Law Signed By Government Creates Rules That Could Reduce Income Tax For Cars By Allowing Vehicle Value Updates In Declarations

With New Federal Law Allowing Vehicle Value Updates in Declarations, Brazilians Can Reduce Income Tax on Cars Before Sale. Learn What Changes and Who Can Benefit.

How Does the REARP Work and Why Can It Reduce Income Tax on Cars?

Why Can the Change Help Those Looking to Sell Their Vehicle?

Who Can Use the REARP and How to Join

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New Law Signed By Government Creates Rules That Could Reduce Income Tax For Cars By Allowing Vehicle Value Updates In Declarations

With New Federal Law Allowing Vehicle Value Updates in Declarations, Brazilians Can Reduce Income Tax on Cars Before Sale. Learn What Changes and Who Can Benefit.

How Does the REARP Work and Why Can It Reduce Income Tax on Cars?

Why Can the Change Help Those Looking to Sell Their Vehicle?

Who Can Use the REARP and How to Join

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Norway is drilling 27 kilometers of rock 392 meters below the bottom of a fjord to build the world’s largest and deepest underwater road tunnel — when completed, a 21-hour journey will be reduced to 10.

Chinese engineers begin filling a 217-meter dam at an altitude of 3,000 meters and prepare a 2,240 MW hydroelectric power plant to integrate hydropower, solar, and wind energy in the upper Jinsha.

A German architect built a cylindrical house in 1994 that rotates to follow the sun throughout the day, generates 5 times more energy than it consumes, and was the world’s first energy-positive house.

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China has just successfully tested the world’s first ground effect maritime vehicle, a craft that flies up to 6 meters above the water at 200 km/h, uses quantum technology and 6G communication, and can rescue patients in the middle of the ocean.

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