Changes to the ITR Declaration and the End of the ADA: What Rural Producers Need to Know

Law 14.932/2024 brought about an important change: the Environmental Declaratory Act (ADA) is no longer mandatory for rural producers to receive a discount on the Rural Property Tax (ITR). From now on, the Rural Environmental Registry (CAR) will be enough to define the areas of the property that will be exempt from the tax. The aim of this change is to simplify life for rural producers by using the CAR, which is already georeferenced, as sufficient proof of the existence of preservation areas and legal reserves.

However, despite the change in the law, the Federal Revenue Service, through Normative Instruction (IN) 2.206/2024, still requires the presentation of the ADA. This year, the deadline for the declaration was August 12 to September 30, generating doubts and insecurity for the producer and a legal discussion about the principles of security and retroactivity of the rules.

Legal certainty and the need for simplification

The issue is complex and very relevant to agribusiness, because the ADA, created by Environmental Law 6.938/81 and other rules supplemented over the years, ends up generating overlapping requirements. Requiring the ADA in order to obtain an ITR reduction seems like an unnecessary obstacle, considering that the Rural Environmental Registry already fulfills this function in a more precise and technical way.

From the point of view of legal certainty, it is essential to simplify these rules so that rural producers can focus on production, without the burden of accessory obligations that often overlap. The CAR is more complete and detailed than the ADA and better meets the needs of environmental proof, making the ADA obsolete for this purpose.

How should producers proceed?

With the change, producers should seek legal advice on how to proceed, given that there is still a scenario to be consolidated. IN 2.206/2024 still maintains the ADA as a requirement, but from a legal point of view, the new Law 14.932/2024 revokes this requirement. Therefore, keeping up with updates and consulting experts is essential for rural producers to be able to fulfill their obligations safely and correctly.

This situation underscores the importance of discussions that promote a more stable and unbureaucratic policy for the rural sector, giving producers more clarity and confidence in fulfilling their environmental and tax responsibilities.