BRAZIL Law and Practice Contributed by: Daniel Zugman and Frederico Bastos, BVZ Advogados | Bastos, Bari, Vilela e Zugman
partners also enjoy succession rights equivalent to those of spouses under Brazilian law. The principal practical difference from marriage lies in proving the existence and commencement of the relationship. Marriage is evidenced by civil registra - tion, whereas a stable union may exist without formal registration, although it is commonly documented by a public deed or cohabitation agreement to pro - vide greater legal certainty. In the absence of formal documentation, judicial proceedings may be required to establish the existence of the stable union and its patrimonial consequences. For tax and private wealth planning purposes, stable partners generally have access to the same planning mechanisms as married couples, including cohabita - tion agreements, wills, family holding companies and lifetime gifts. Brazil encourages charitable giving primarily through targeted tax incentive regimes rather than through a broad income tax deduction for charitable donations. For individuals, charitable donations are generally not deductible for income tax purposes unless they are made through specific statutory incentive pro - grammes, such as those supporting culture, sport, healthcare, audiovisual projects and funds for chil - dren, adolescents and older persons. In these cases, part of the individual’s income tax liability may be allo - cated to approved projects. For companies subject to the actual profit regime ( lucro real ), certain incentivised donations may be deductible within the applicable statutory limits. Dona - tions made outside these programmes are generally not deductible. Qualifying charitable and non-profit organisations may benefit from constitutional tax immunity or statutory income tax exemptions, provided the relevant legal requirements are satisfied. The application of gift tax (ITCMD) to charitable donations depends on the leg - 10. Charitable Planning 10.1 Charitable Giving
islation of the relevant state, many of which provide exemptions or immunities for qualifying charitable entities or purposes. From an estate-planning perspective, philanthropic objectives are commonly achieved through lifetime gifts, wills and, in some cases, private foundations or associations, as Brazilian law does not provide struc - tures equivalent to the charitable trusts found in many common law jurisdictions. 10.2 Common Charitable Structures As Brazilian law does not provide structures equivalent to the charitable trusts found in many common law jurisdictions, charitable planning is generally carried out through associations and private foundations. In addition, associations and private foundations may be supported by endowment funds, which have become an increasingly relevant mechanism for financing long- term philanthropic activities. Associations are non-profit entities formed by individ - uals to pursue a common charitable or public-interest purpose. Their principal advantages are flexibility in governance, relative ease of incorporation and the ability to adapt their activities over time. Their main disadvantage is that they depend on the participation of their members and generally provide less perma - nence than foundations. Private foundations are legal entities established by permanently dedicating assets to a specific charitable or public-interest purpose. They are commonly used where a founder wishes to preserve wealth for phi - lanthropy over the long term. Their principal advan - tages are permanence and the protection of dedicated assets. However, they are subject to stricter govern - ance requirements and oversight by the Public Pros - ecutor’s Office and offer less flexibility to amend their purposes or organisational structure. Brazilian law also regulates endowment funds, which may be established to support civil associations, pri - vate foundations and other public-interest institutions. Under this framework, the principal capital is intended to be preserved, with philanthropic activities funded primarily through the income and returns generated by the endowed assets. The structure therefore provides
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