Decree established that IOF on foreign exchange will be reduced to zero up to 2029

IOF tax rate’s reduction will take place gradually

TheDecree No. 10,997/2022 established the gradual reduction, up to 2029, of IOF (Imposto sobre Operações de Crédito, Câmbio e Seguro, ou relativas a Títulos ou Valores Mobiliários , or Tax on Credit, Exchange and Insurance Operations, or related to Titles or Securities) on foreign exchange operations.

According to the note released by the Ministry of Economy, this measure is important to make the country more attractive for investors and nearer to its admittance to the Organization for Economic Co-operation and Development (OECD).

The most immediate change, which took effect on March 19, is a reduction of the IOF on loans of up to 180 days made abroad, from 6% to 0%.

The following table lists the operations and the effective dates of the new rates:

Solutions for exchange operations

DPC’s Financial Management team works on the quotation, the negotiation, the hiring, and the execution of exchange operations, allowing for the strategic management of our clients’ finances. Count on our support: dpc@dpc.com.br.