Federal Government Implements Changes to IOF Rules

Through Decrees No. 12,466/2025 and No. 12,467/2025, issued respectively on May 22 and 23, the Government amended Decree No. 6,306/2002, which regulates the Tax on Financial Operations (IOF) related to credit, foreign exchange, insurance, or securities transactions.

The new rules are already in effect, except for certain provisions that will take effect starting June 1, 2025.

The changes primarily refer to foreign exchange, credit, and loan operations, with the following highlights:

Corporate Credit

The IOF rates for credit operations involving legal entities have been increased, with the fixed rate rising from 0.38% to 0.95% and the daily rate from 0.0041% to 0.0082%. The existing cap will be maintained, but with updated IOF amounts.

Foreign Exchange

The IOF on international card transactions, currency purchases, and prepaid cards has been reduced to 3.5% (previously 6.38%). For other foreign exchange transactions, the rate is 0.38% on inflow and 3.5% on outflow.

Interbank operations, import and export transactions, inflow and return of funds from foreign investors, and remittance of dividends and interest on equity to foreign investors remain exempt.

Insurance

The IOF is now charged on insurance plans with survival coverage (such as VGBL pension plans). The rate remains zero for monthly contributions up to R$ 50,000; above that amount, it increases to 5%.

Tax Support

Domingues e Pinho Contadores has a multidisciplinary team that monitors legislative changes impacting business operations. For tax support, contact: dpc@dpc.com.br.