In Portuguese Tax on Rural Real Estate is named Imposto sobre a Propriedade Territorial Rural and often referred to by the abbreviation ITR.
The Tax on the rural real estate applies to individuals or legal entities that own property which is outside of the urban zone of the city. Real estates located in more than one city must are liable to taxes of the city where the head office of the real estate is located. It's an annual assessment which requires a declaration of land possession, called DITR.
Instituted in 1891, it was first the responsibility of the states, then municipalities, and finally, of the federal government. The rates are higher for larger tracks of land than they are for smallholdings, in an attempt to avoid the existence of vast unproductive areas.
The declaration of territorial rural property, DITR, is done annually at the beginning of the year by all rural landowners. The document consists of:
- Documento de Informação e Atualização Cadastral do ITR or document of information and registry update of ITR (Diac): destined for the collection of registration data of the owner and their rural real estate.
- Documento de Informação e Apuração do ITR or document of information and verification of ITR (Diat): destined for the verification of ITR relating to the taxable rural real estate.
The documentation must be given to the Federal Revenue Service by an established date every year; in 2013, the deadline was September, 30th.