Stablished abroad In order to avoid situations of double or multiple taxation, the Federal Constitution has always provided that the ITCMD "will have jurisdiction over its institution regulated by complementary law" a) "if the donor is domiciled or resides abroad" ; and b) "if the deceased had property, was resident or domiciled or had his inventory processed abroad rticle . It turns out that said complementary law was never enacted by the National Congress, although projects for its creation are already beig processed.
As a consequence, States never had the competence to institute the ITCMD in these international cases. Without prejudice Engineering Email List to the silence of the national legislator, the majority of Brazilian States simply ignored the aforementioned constitutional requirement and provided in their laws for the incidence of ITCMD on international donations. This practice gave rise to immense legal litigation that was finally resolved by the STF, with the precedent mentioned above.
Even so, the majority of ministers adhered to the proposal to modulate the effects so that the decision only takes effect from the publication of the ruling (04/20/2021). Cases of legal actions pending conclusion at that time were excluded, in somewhat confusing wording, which can still be the subject of clarification in the context of motions for clarification filed by both parties, awaiting judgment. In summary, the STF concluded that, until the issuance of a complementary law that regulates the competence of the State, a) international inheritances are not taxable by the ITCMD , when the deceased person owned assets, was a resident.