Financial Transactions Tax (IOF): rates changed in foreign exchange, credit, and insurance transactions

Decree No. 12,499/2025, published on June 11, introduced changes to the Tax on Credit, Exchange, and Insurance Transactions, or on Securities and Financial Assets (IOF). The alterations include:

Credit transactions

The additional IOF rate on credit transactions with a legal entity borrower will be reduced from 0.95% to 0.38%.

The IOF on the credit transaction known as "risco sacado" (drawee risk) will no longer have a fixed rate; instead, a daily rate of 0.0082% will be apply.

Foreign exchange transactions

The IOF rate will be zero on the settlement of foreign exchange transactions for the return of funds invested by foreign investors in equity holdings in Brazil.

Life insurance plans

The current 25% IOF rate will be reduced as follows:

Zero in the following situations:

From 01/01/2026, for premiums paid by individuals to life insurance plans with survival coverage, provided that the total contributions to all plans in the year do not exceed BRL 600,000.

Until 31/12/2025, for premiums paid by individuals to life insurance plans with survival coverage, with a limit of up to BRL 300,000 in contributions to the same insurer.

For premiums paid by employers (legal entities) for life insurance plans for their employees.

5%:

On the amount exceeding BRL 600,000 per year in contributions to a life insurance plan with survival coverage paid by individuals from 01/01/2026, provided that the total contributions across all plans in the year, even from different insurers, exceed BRL 600,000.

On the the amount exceeding BRL 300,000 in contributions destined for the funding of a survival coverage plan paid by an individual until 12/31/2025, provided that the total of contributions to all plans under the policyholder's ownership between 06/11/2025 and 12/31/2025, with the same insurer, exceeds BRL 300,000.

Investment Funds in Credit Rights (FIDC)

The IOF rate will be 0.38% on the primary acquisition of FIDC shares, including for financial institutions, except for acquisitions made until 06/13/2025, or on the secondary market.

Tax Support

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