Insights

Brazil Increases IOF Tax Rates on Credit, FX, and Insurance Transactions

Editorial Team 06 Jun 2025

An overview by Demarest, Taxand Brazil

In May, Brazil’s federal government issued Decree No. 12,466/2025, raising IOF (Financial Transactions Tax) rates on credit, foreign exchange, and insurance transactions. These changes took effect from 23 May 2025, with IOF on receivables-related credit transactions delayed until 1 June 2025.

Shortly after, Decree No. 12,467/2025 reversed some measures, reinstating:

• 0% IOF on FX transactions involving investment fund transfers abroad
• 1.1% IOF on FX transactions for overseas investments by Brazilian residents, pending further regulation by the Brazilian Federal Revenue Service

Experts from our Brazilian member firm Demarest have published an overview of these degrees here, warning that further changes may follow in response to industry backlash.

Article tags

Brazil | Cross border | International Tax | Investments