Sanctioned in July, Law 14.932/2024 authorizes the use of the Rural Environmental Registry (CAR) to determine the taxable area of a rural property. The CAR is a mandatory national electronic public registry for all rural properties. It is the basis for control, monitoring, environmental and economic planning, and combating deforestation, in addition to being used to calculate the Rural Land Tax (ITR), which must be paid by rural owners.
"With the new legislation, the Environmental Declaratory Act (ADA) was replaced. Although the change seems small, it facilitates the exclusion of preservation areas from the ITR calculation. This serves as an incentive for rural landowners to invest, maintain and even expand the preservation spaces on their properties", says Scarlett dos Santos, lawyer at Razuk Barreto Valiati. "This is a step forward for the conservation of biodiversity and the fight against climate change", she highlights.
Established by Law 6.938/1981, the ADA allowed owners to declare the existence of Permanent Preservation Areas (APP), Legal Reserves (ARL) or Private Natural Heritage Reserves (RPPN), Areas of Ecological Interest (AIE), Covered Areas by Floresta Nativa (AFN), among others, to Ibama. For these areas to be considered in the ITR, the presentation of the ADA was mandatory, considered a bureaucratic process.
Over the years, several legal challenges have arisen regarding the tax calculation basis for rural properties. With the ADA, permanent endorsement in the property registry and a specific presentation to Ibama were necessary for APPs and other areas of interest to be recognized.
"This bureaucracy increased the obligations of rural landowners, demanding information that was already included in the CAR and was not always deducted from taxes", explains Scarlett.
The reduction in bureaucracy and the possibility of having taxes more in line with reality pleased the agricultural sector. "With the enactment of the new law, it is expected that the bodies will be able to carry out a more accurate and, consequently, fairer investigation. Furthermore, the legislation promotes sustainable development, increasing the interest and benefits for owners in maintaining and expand areas of APP, ARL, RPPN, AIE, among others", highlights the lawyer.
The new law also amends the Forest Code (Law 12.651/2012), which established parameters for the protection of native forests. The 2024 legislation modifies item 5 of article 29, which created the CAR within the National Environmental Information System (SINIMA). The Forest Code addresses several topics related to the environment, including concepts that are now fundamental in ESG approaches, such as land rights, water availability and energy generation.
"The Forest Code was a great advance in establishing clear parameters on the treatment of vegetation on rural properties. It is clear, however, that legislation can be improved, especially those that affect society as a whole and not just farmers or landowners. land in rural areas", says Santos.
Ensuring the sustainability of agricultural production is a challenge for national producers, but it also opens up business opportunities abroad, allowing traceability of the entire production chain, in accordance with ESG principles and the requirements of international partners.
"APPs and other preservation areas tend to become a differentiator, especially when negotiating with clients outside Brazil", he concludes.
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• New law uses Rural Environmental Registry to calculate rural taxable area
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