Provisional Measure on taxation of financial investments expires

Regulation lapsed after the deadline for its review expired

The Chamber of Deputies withdrew Provisional Measure 1,303/2025 from the voting agenda. This measure was created to redefine taxation rules for financial investments and virtual assets starting January 1, 2026. The proposal also aimed to offset the repeal of the decree that increased the Tax on Financial Operations (IOF).

With the withdrawal from voting, the measure—commonly referred to as the “IOF Provisional Measure”—has expired, as the approval deadline was October 8.

The text aimed to increase the Federal Government’s revenue. Among its provisions were the taxation of banks, major investors, and betting companies (“bets”), with rates ranging from 12% to 18% on gross revenue. Investments such as LCA, LCI, and LCD would also become taxable, and the tax rate on Interest on Equity Reserve would be increased.

How are the tax rates affected?

The tax rates now return to the same levels that were in effect before the publication of Provisional Measure 1.303/2025:

Tax Support

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