The property tax system in Brazil

The National Fiscal Code (CTN) lays down the fundamental principles of the property tax in Brazil. The code defines the components of the tax base, the tax liability, and the general exemptions from the tax base. Other specifications concerning property taxes are defined at local government level. As a consequence, procedures related to establishing the tax base and rates for the property tax may vary considerably around Brazil. Since the reform of the taxation system undertaken in 1967, the property tax has been imposed at local government level. Until 1988, the only sources ofraising revenue from taxes administered by municipalities were the property tax and a tax on services (ISSQN).