In an interview with the E-Investidor website, our partner Camila Tapias commented on the provisions of the bill regulating tax reform in relation to tax collection for real estate investment funds (FIIs).

One significant change mainly affects brick FIIs with income-generating properties. The payment of IBS and CBS on the income generated would be at the discretion of the managers, and the funds would earn a tax credit to offset against other taxes.

With the option, managers tend to choose not to contribute due to the lease agreements and the additional cost. “If they choose to pay, the funds run the risk of losing their attractiveness by raising rental prices, or they won’t find it difficult to pass on the cost of the new taxes to tenants,” said Camila.

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