The measure restores the previous tax rates for credit, foreign exchange, insurance, and securities transactions, returning to the wording that was in effect until May 22, 2025, according to the former Decree No. 6,306/2007.

What does this mean in practice?

• Purchase of foreign currency in cash: reduced tax rate from 3.50% to 1.10%;
• Receipt of foreign loans with a term of less than 365 days: zero tax rate (previously 3.50%);
• Purchases and withdrawals abroad with cards or apps linked to payment arrangements: the new rate is 3.38%, following the scale set to reach zero in 2028;
• Foreign loans with an average term of up to 364 days, contracted directly or through the issuance of securities: return to a zero rate;
• Transfer of funds abroad by individuals, as available funds (such as transfers to their own accounts): reduced from 3.50% to 1.10%.

New IOF levies were revoked on:

• Risk-assigned credit operations (where the credit taker differs from the debtor);
• Primary acquisition of shares in Credit Rights Investment Funds (FIDCs).

The measure restores the previous tax rates for credit, foreign exchange, insurance, and securities transactions, returning to the wording that was in effect until May 22, 2025, according to the former Decree No. 6,306/2007.

What does this mean in practice?

• Purchase of foreign currency in cash: reduced tax rate from 3.50% to 1.10%;
• Receipt of foreign loans with a term of less than 365 days: zero tax rate (previously 3.50%);
• Purchases and withdrawals abroad with cards or apps linked to payment arrangements: the new rate is 3.38%, following the scale set to reach zero in 2028;
• Foreign loans with an average term of up to 364 days, contracted directly or through the issuance of securities: return to a zero rate;
• Transfer of funds abroad by individuals, as available funds (such as transfers to their own accounts): reduced from 3.50% to 1.10%.

New IOF levies were revoked on:

• Risk-assigned credit operations (where the credit taker differs from the debtor);
• Primary acquisition of shares in Credit Rights Investment Funds (FIDCs).

Recently, the dollar reached R$6.18, driven by tensions between the United States and China. In yet another chapter of the trade war, the US government raised tariffs on Chinese products, and China responded with a similar measure. The move, prompted by President Donald Trump’s decisions, raised alarm bells in the global market and led investors to seek protection in safer assets, which put pressure on the exchange rate in Brazil.

This example shows how political, geopolitical and economic factors have the power to influence the value of the dollar. Changes in domestic policies, political instability and international conflicts, for example, affect investor confidence and thus the flow of foreign capital. In emerging countries like Brazil, this movement is often even more sensitive.

For companies, fluctuations in the dollar have a direct impact on costs and business planning. Importers suffer from rising prices for products and inputs from abroad. Exporters, on the other hand, can even gain competitiveness with a higher dollar, but the lack of predictability makes it difficult to plan future revenues. In addition, exchange rate volatility can increase the cost of foreign currency debts and create uncertainty when it comes to investing.

Trump’s re-election caused fluctuations in the Brazilian currency market. The day after his victory was confirmed, the U. S. dollar opened higher, reaching R$5.83, but ended the trading session down 1.26% at R$5.67. This volatility reflects investors’ uncertainty about future US economic policies and their impact on emerging markets such as Brazil.

Analysts warn that Trump’s protectionist policies, such as imposing high tariffs on products from countries like Mexico, Canada and China, could trigger a trade war that indirectly affects Brazil. Although the country is not a direct target of these tariffs, the economic slowdown in important trading partners could reduce demand for Brazilian commodities, putting pressure on the trade balance and, consequently, the value of the Brazilian real.

For analysts, if the US government increases public spending and cuts taxes, inflation could rise. To control this, the Federal Reserve may raise interest rates, making investments in the country more attractive. As a result, investors may withdraw funds from emerging markets, such as Brazil, and direct them to the United States. This flow of capital strengthens the dollar and weakens the real.

The appreciation of the dollar makes Brazilian imports more expensive, which puts pressure on domestic inflation and challenges the Central Bank (BC) to adjust monetary policy. In addition, a weaker real raises the cost of foreign debt, which is mainly in dollars, which could worsen Brazil’s fiscal situation.

The government estimates that these measures will result in savings of R$327 billion between 2025 and 2030.

The financial market’s reaction was immediate. The dollar reached R$6.09, its highest nominal value in history, and the Ibovespa index recorded its lowest closing level since June 2024. Investors expressed skepticism about the effectiveness of the proposed measures, considering them insufficient to contain the growth of public debt.

Faced with this scenario of political and economic instability, companies need to adopt effective strategies to mitigate risks and ensure their sustainability. Learn about some of them below.

Adaptation in uncertain times

In an unstable environment, the ability to adapt is essential. Reviewing strategic planning allows companies to adjust goals and actions in line with market changes.

Evaluating new investments

Even in times of instability, evaluating new investments can be an advantageous strategy. Investing in tangible assets can be a way of protecting assets against inflation and currency devaluation.

Financial protection instruments

The use of tools such as currency hedges and futures contracts helps mitigate risks arising from fluctuations in commodity prices or exchange rates as they provide greater predictability in cash flow, which is essential for companies that depend on international operations.

Long-term contracts

Negotiating long-term contracts with suppliers and customers can bring financial stability by fixing prices and conditions. This reduces exposure to abrupt economic variations, such as inflation or interest rate rises.

“Nota fiscal” and invoice: what’s the difference?

“Nota fiscal”, which is mandatory in Brazil, is an official document that registers commercial transactions, whether the sale of products or the provision of services. It details important information, such as the amount charged and the applicable taxes. Although it has a similar function, the invoice is only used in international transactions to record payment requests between companies in different countries.

In international operations, it is usually necessary to issue both documents: invoice, to record the transaction with the foreign client, and nota fiscal, to meet Brazilian tax requirements.

How to issue invoices for services abroad:

• Register the foreign client’s details in your company’s management system. Make sure the information is correct and up-to-date.
• Issue an invoice with details of the service provided, such as description, total value, payment terms and delivery terms. Send the invoice to the client to formalize the international operation.
• Access your city’s municipal portal to issue the NFS-e. Fill in the fields with the details of the operation and review the information before confirming the issue.
• Use a specialized platform to carry out foreign exchange transactions.

The conversion of amounts and the receipt of payment in local currency must follow Brazilian exchange regulations.

For your company to be able to operate internationally safely, avoiding tax problems and fostering reliable and long-lasting business relationships, in addition to following these steps, it is important to have a reliable partner.

ACC is a credit line offered before goods are shipped abroad. When an exporter closes an international sales contract but needs funds to produce the goods, they can apply for ACC through an authorized financial institution. With this, the exporter receives an advance in Brazilian real (BRL), equivalent to the exchange contract signed with the importer, helping to cover production costs such as raw materials, salaries, and other expenses before shipment.

ACE, on the other hand, is an advance granted after the goods have been shipped. This option suits companies that already have sufficient resources for production but wish to ensure an immediate cash influx, with the exchange rate fixed at the time of shipment. ACE typically has lower costs than ACC because the risk to the financial institution is substantially reduced, as the goods have already been dispatched, eliminating delivery-related uncertainties.

Both ACC and ACE are flexible, with no set minimum or maximum amounts for contracting. Their costs, generally linked to the interest rate of the contracted currency, such as the US dollar, make these tools more accessible. Additionally, ACE is not subject to taxation, which can be advantageous for many exporters.

Exchange rate fluctuations can occur due to a number of factors, including inflation, political and economic events, as well as market speculation, and can have a significant impact on companies and investors carrying out international transactions.

In this context, the importance of currency hedging becomes clear.

Currency hedging is a financial strategy used to protect against volatility in the foreign exchange market. It involves the use of financial instruments, such as forward contracts, futures contracts and currency options, to mitigate the risks associated with exchange rate fluctuations.

Forward contracts are agreements negotiated directly between two parties to buy or sell a currency at a specific exchange rate on a future date.

Futures contracts, on the other hand, are traded on stock exchanges, providing greater liquidity and transparency.

 Currency options are instruments that give the buyer the right, but not the obligation, to buy or sell a currency at a predefined rate before or on the expiration date.

By adopting one of these instruments, a company can guarantee a fixed exchange rate for a future date, protecting itself against possible adverse variations and ensuring greater predictability in its cash flow.

A successful hedging strategy requires a thorough assessment of the company’s needs and risks, along with an analysis of market conditions. It is also necessary to consider the costs involved, which can differ based on the instrument used and the prevailing economic conditions.

What is the forex spread?

It is the difference between the cost of acquiring a foreign currency by a financial institution and the final price charged to the client. In short, this difference represents the bank or broker’s profit on foreign exchange transactions. For example, if a bank buys dollars at a rate of R$4.60 and sells them at R$4.80, the exchange spread is R$0.20 per dollar.

Charging a forex allows financial institutions to cover their operating costs and the risks associated with international transactions. Factors such as market volatility and the relationship between currency supply and demand influence the value of the spread. In addition, banks need to include a profit margin to maintain the economic viability of their foreign exchange operations.

When is the forex spread charged?

It is charged in various situations, including international purchases, money transfers abroad, receiving remittances and currency conversions for travel. This fee is charged whenever foreign currency is purchased.

To calculate the exchange spread, the official exchange rate of the currency is subtracted from the price charged by the financial institution. In the example cited above, the spread of R$ 0.20 represents the additional cost to the customer and the institution’s profit.

Cheaper international money transfers

The forex spread is an essential component in international transactions, directly impacting the costs of operations such as purchases, transfers and foreign exchange for travel. By understanding and calculating this spread, you can plan better financially and choose the financial institutions that offer the best conditions.

The Inter-American Development Bank (IDB) will act as an intermediary in contracting foreign exchange insurance in Brazil, facilitating the connection between investors and ecological projects. This is essential due to the high cost of currency protection, which often makes investments in foreign currency unviable.

The federal government is thus seeking to provide a mechanism to mitigate the impact of sudden changes in the exchange rate on foreign investments. The cost associated with hedging can make these investments impractical, delaying or even making unfeasible the necessary ecological transition.

Exchange rate fluctuations affect international operations, increasing costs and reducing profits. To mitigate this risk, there are options such as exchange rate locks and NDF (Non-Deliverable Forward). There is no standard strategy; each client receives personalized guidance to protect their operation.

A currency lock is a common form of currency hedging, where the client and the bank agree on a fixed exchange rate for a future transaction, offering protection against unfavorable currency fluctuations. A Proforma Invoice is usually required to justify the transaction.

The NDF, on the other hand, is a derivative contract that allows you to speculate or hedge against changes in the exchange rate over a given period. Unlike currency locks, it does not involve the physical delivery of foreign currency.