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Supreme Court partially reinstates decree raising IOF rates
On July 16, 2025, the Supreme Court, in a preliminary ruling, partially restored the validity of Decree No. 12.499/2025, published by the Federal Government, which increased the rates of the Tax on Credit, Exchange, and Insurance Operations, or related to Securities or Financial Instruments (IOF).
However, the Court's decision maintains the suspension regarding the “risco sacado” (drawee risk) operations, as it considers this category to be outside the tax’s scope.
Check out the tax rates effective from now on.
| Operation | Type | Tax rates |
|---|---|---|
| International cards (credit, debit, prepaid) | Foreign exchange | 3,5% |
| International account card | Foreign exchange | 3,5% |
| Remittance to an overseas account (investments) | Foreign exchange | 1,1% |
| Remittance to an overseas account (personal expenses) | Foreign exchange | 3,5% |
| Purchase of foreign currency in cash | Foreign exchange | 3,5% |
| Transfer of funds abroad (Brazilian funds) | Foreign exchange | zero |
| Loans with a minimum average term of up to 364 days. | Foreign exchange | 3,5% |
| Credit for legal entities | Credit | 0,38% + 0,0082% per day |
| Reverse factoring transactions | Credit | Exemption |
| Contributions to VGBL and similar plans (2025) | Insurance | 5% on the amount exceeding BRL 300,000 |
| Contributions to VGBL and similar plans (2026) | Insurance | 5% on the amount exceeding BRL 600,000 |
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 12/31/2025, 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.
To 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 assistance
Domingues e Pinho Contadores offers its clients guidance on the latest legislative changes, supporting their daily activities and helping with business decisions. For this support, please contact us by e-mail: dpc@dpc.com.br.
How can DPC help your company?
Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br
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