In the last week of June, the Federal Government reversed important changes to the rules governing the IOF (Tax on Financial Operations). The changes that had been announced in May and June of this year were officially revoked by Legislative Decree No. 176/25, published on June 27, 2025.
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).
Why did this change happen?
The IOF increase, announced through presidential decrees, raised concerns among experts, companies, and financial institutions. Many argued that the new rates could discourage investment and burden legitimate transactions made by Brazilians abroad. In view of this, the National Congress decided to suspend the decrees through a joint vote in the Chamber of Deputies and the Senate, returning to the previous system.
The importance of a partnership like Pryor Global
In times of regulatory instability such as these, it is essential to have specialized support to ensure security and efficiency in international operations.
The Pryor Global team closely monitors all changes in foreign exchange rules, offering personalized advice to companies that operate outside Brazil or frequently conduct international transactions. More than just interpreting the rules, Pryor helps its clients anticipate impacts, better plan their operations, and reduce risks in the face of sudden changes in the tax landscape.
Do you have questions about how these changes impact your operations? Contact us.
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