Alerts
- 13 June 2025
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Government revokes IOF changes with new decree: see our complete guide and learn about the updates
Considering the recent changes made to the IOF regulation by Decree No. 12,499, dated June 11, 2025, we have compiled below an overview of the developments and the main impacts of the new rules, which come into effect on June 12, 2025.
The new IOF decree revokes part of the amendments made in May and directly affects foreign exchange, credit, insurance, and securities operations. To assist in analyzing these changes, we provide a complete guide.
IOF-FX
The new decree changes the regulation that had been implemented between May 23 and June 11, 2025, revoking part of the previous amendments for foreign exchange operations.
| Outbound remittances | |||
| Type of transaction | How it was | May/2025 changes | How it stands now |
| Transactions not subject to specific regulations (such as services, royalties, etc.) | 0.38% | 3,5% | 3.5% |
| Repatriation of capital invested by a foreign investor in equity interests in Brazil | Dividends and interest on net equity (JCP) – 0%
Capital reductions and other transactions – 0.38% |
Dividends and interest on net equity (JCP) – 0%
Capital reductions and other transactions – 3.5% |
Dividends and interest on net equity (JCP) – 0%
Capital reductions and other transactions – 0% |
| Remittances related to transactions by payment instrument issuers involving purchases of goods and services and cash withdrawals abroad | 3.38% (reduced to zero until 2028) | 3.5% | 3.5% |
| Travel checks, prepaid cards | 3.38% (reduced to zero until 2028) | 3.5% | 3.5% |
| Funds made available abroad and purchase of foreign currency in cash | 1.1% | 3.5% | 3.5% |
| Outbound remittances for investment purposes | 1.1% | 1.1% | 1.1% |
| Specific operations subject to a zero tax rate or exemption | 0% or exemption | 0% or exemption | 0% or exemption |
| Inbound remittances | |||
| Type of transaction | Previous framework | May/2025 changes | How it stands now |
| Cross-border loans with an average maturity of up to 364 days | 0% | 3.5% | 3.5% |
Check the comparative figures in the complete guide.
IOF – Credit
| Type of transaction | Previous annual cap | Previous annual cap | Current annual cap |
| Loans between legal entities | Up to 1.88% | Up to 3.95% | Up to 3.38% |
| Advance payment to suppliers (with drawee’s risk and forfaiting structures) | Not subject to taxation | Up to 3.95%*1 | Up to 3%*1 |
| Simples Nacional regime (transactions of up to R$30,000.00) | Up to 0.88% | Up to 1.95% | Up to 1.38% |
| MEI (Brazilian Individual Microentrepreneur) – transactions not exceeding R$30,000.00 | Up to 0.88% | Up to 1.38% | Up to 1.38% |
| Cooperative-related transactions | 0% | The 0% rate applies exclusively to aggregate transactions below R$100 million | The 0% rate applies exclusively to aggregate transactions below R$100 million |
1In practice, transactions with suppliers usually do not reach the cap due to their short-term nature.
The incidence of IOF on credit risk assumed by the borrower still raises significant doubts—and may be subject to legal challenge.
Learn more in the complete guide.
IOF – Securities (Securities and Financial Assets)
The new IOF decree establishes a tax of 0.38% on contributions to FIDCs, except for:
– Quotas subscribed until June 13, 2025;
– Quotas acquired on the secondary market.
Learn more in the complete guide.
Validity of the Decrees
Changes to Decrees No. 12,466 and 12,467:
- Foreign exchange and credit: May 23 to June 11
- Additional IOF-credit rate on assumed risk: June 1 to June 11
- VGBL: May 23 to June 11 (with payment deadline extended to June 25, according to Normative Ordinance MF No. 1,215/2025)
Decree No. 12,499/2025:
- Effective from June 12, 2025
For more details on the revocations, their practical effects, and the full regulatory evolution, access the material prepared by our team: Click here to download the complete guide.
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