What you need to know
The measures provided for in Decrees 12.466/25 and 12.467/25 came into force on May 23, 2025, and bring significant changes to the Tax on Financial Transactions (IOF), affecting products such as foreign exchange, VGBL pension plans, international credit cards, and loans.
We highlight the main changes that directly impact the international scenario, from the perspectives of foreign exchange, credit, and insurance.
IOF on Foreign Exchange
Unification of the 3.5% tax rate:
- International transactions with credit or debit cards, prepaid cards, withdrawals, and purchases abroad that were previously taxed at 3.38% will now be taxed at 3.5%.
- The purchase of foreign currency in cash, which was previously taxed at 1.1%, will now be taxed at 3.5%.
- Remittance of funds abroad by individuals, for the purpose of making them available to accounts held abroad, owned by themselves, their sponsors, relatives, or similar parties, which was previously taxed at 1.1%, will now be taxed at 3.5%.
- Maintenance of residents, transfer of assets, and acquisition of real estate abroad, which were previously taxed at 0.38%, will now be taxed at 3.5%.
- Remittances made by legal entities in payment for services, freight, royalties, and software that were previously taxed at 0.38% will now be taxed at 3.5%.
- Investment abroad (interest in companies) that was previously taxed at 0.38% will now be taxed at 1.1%.
- Short-term external loans (up to 364 days), which were previously exempt, are now taxed at 3.5%.
With the changes implemented, legal entities will now pay more IOF on loans. The IOF rate for companies increased from 1.88% per year to 3.95% per year.
IOF on Credit
Credit for Legal Entities
- Credit for legal entities, which was previously taxed at 0.38% for fixed loans and 0.0041% for daily loans, has been changed to 0.95% and 0.0082%, respectively.
IOF on Insurance
VGBL Pension
- For new investments, an IOF tax rate of 5% is applied when the sum of the amounts contributed exceeds R$ 50,000 per CPF.
For more information, contact Aline Ferreira Dantas (aline.dantas@ronaldomartins.adv.br), telephone No.
+55 (11) 3066-4800 /+34 648108986, Madrid / Spain of RONALDO MARTINS & Advogados