Alerts
- 26 May 2025
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Government Changes IOF Rules with Immediate Effect
The Federal Government published two decrees on May 22 and 23, 2025, introducing significant changes to the IOF (Tax on Financial Transactions) rates applicable to foreign exchange, credit, and insurance transactions. The new rules impact remittances abroad (for example, for services and royalties), debt transactions, among others.
To see the full impact of these changes, access the complete infographic.
IOF-Foreign Exchange: What Has Changed?
| Outbound remittances | ||
| Operation | How it was | Now |
| Operations without specific rules (services, royalties, capital reduction, etc.) | 0.38% | 3.5% |
| Remittances related to transactions of issuers of payment instruments related to the purchase of goods and services and withdrawals abroad | 3.38%
(with a reduction to zero by 2028) |
3.5% |
| Traveler’s checks, prepaid card | 3.38%
(with a reduction to zero by 2028) |
3.5% |
| Remittances to overseas account | 1.1% | 3.5% |
| Remittances to overseas account to be later used for investment purposes | 1.1% | 1.1% |
| Operations subject to the zero rate and exempt | 0% or exemption | 0% or exemption |
| Inbound remittances | ||
| Operation | How it was | Now |
| Foreign loans with a minimum average repayment term of up to 364 days | 0% | 3.5% |
| Operations without specific rules | 0.38% | 0.38% |
| Transactions subject to the zero tax rate and exempt (e.g., investments in the financial and capital markets in Brazil by non-residents in accordance with the rules of the Brazilian Securities and Exchange Commission) | 0% or exemption | 0% or exemption |
Check the comparative numbers in the complete infographic.
IOF-Credit: New Rates
There was an increase in the daily and additional rates, raising the total IOF-Credit amount that may be charged on transactions with a set amount and term over 365 days:
- Legal entities: from 1.88% to 3.95%.
- Companies under Simples Nacional (transactions up to R$ 30,000): from 0.88% to 1.95%.
- Individual Microentrepreneurs (MEI) (transactions up to R$ 30,000): from 0.88% to 1.38%.
Additionally, payment in advance transactions to suppliers (forfaiting and risk sacado) will also be taxed as credit operations, effective June 1, 2025.
See the comparative numbers and application timelines in the complete infographic.
IOF-Insurance
Life insurance plans with survival coverage will be taxed at a rate of 5% on monthly contributions exceeding R$ 50,000.00.
For a consolidated overview, access the complete infographic.
Summary of the 2025 IOF Changes
The 2025 IOF changes significantly alter the taxation of foreign exchange, credit, and insurance transactions. A detailed analysis of the new rates is essential for companies to adjust their operations and financial planning.
Don’t miss the visual breakdown of all changes — access the complete infographic.
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