Federal Revenue Service creates Consumer Tax Reform Pilot
25/06/2025HIGHLIGHTS
Brazilian Congress overturns decrees related to the Tax on Financial Transactions (IOF)
Published on June 27, Legislative Decree No. 176/2025 annuls Decrees No. 12,466, 12,467, and 12,499/2025, related to the Tax on Credit, Foreign Exchange, Insurance, and Securities Transactions (IOF).
In addition to nullifying the effects of these acts, the bill reinstates Decree No. 6,306/2007, responsible for regulating the IOF. The measure covers loans, financing, credit cards, and international remittance.
Impact on IOF Rates
With the repeal of the decree that modified the IOF, rates return to their previous values. See the updated for some transactions:
|
International cards (credit, debit, prepaid) |
3.5% ⭢ 3.38% |
|
International account card |
3.5% ⭢ 1.1% |
|
Remittance to an overseas account (personal expenses) |
3.5% ⭢ 1.1% |
|
Remittance to an overseas account (investments) |
1.1% ⭢ 0.38% |
|
Purchase of foreign currency in cash |
3.5% ⭢ 1.1% |
|
Short-term loans (up to 364 days) |
3.5% ⭢ zero |
|
Transfer of funds abroad (Brazilian funds) |
zero ⭢ zero |
|
Credit for companies (legal entities) |
0.38% + 0.0082% per day ⭢ 0.38% + 0.0041% per day |
|
Reverse factoring transactions |
0.0082% per day ⭢ exemption |
|
Contributions to VGBL and similar plans (2025) |
5% on the amount exceeding BRL 300,000 ⭢ exemption |
|
Contributions to VGBL and similar plans (2026) |
5% on the amount exceeding BRL 600,000 ⭢ exemption |
It is still necessary to monitor the case, as the government is considering taking legal action to reinstate the decree that increased the IOF.
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