{"id":24173,"date":"2025-07-01T18:23:16","date_gmt":"2025-07-01T21:23:16","guid":{"rendered":"https:\/\/lefosse.azurewebsites.net\/20017-2\/"},"modified":"2025-12-10T15:26:29","modified_gmt":"2025-12-10T18:26:29","slug":"20017-2","status":"publish","type":"post","link":"https:\/\/lefosse.com\/en\/noticias\/alerta\/20017-2\/","title":{"rendered":"IOF: Congress Blocks Rate Hikes, Prompting Government Appeal to the Supreme Court"},"content":{"rendered":"

On June 25, 2025, the Brazilian House of Representatives and the Federal Senate approved the Legislative Decree that suspended the effects of Decrees No. 12,466 of May 22, 2025; No. 12,467 of May 23, 2025; and No. 12,499 of June 11, 2025, which had increased the Tax on Financial Transactions (\u201cIOF<\/strong>\u201d) rates on certain operations.<\/p>\n

Following approval by both legislative chambers, the measure was formalized through Legislative Decree No. 176 of 2025, published on June 27, 2025 (\u201cLD 176<\/strong>\u201d), restoring the original wording of Decree No. 6,306 of December 14, 2007, which regulates the IOF. Below, the tables summarize the IOF changes to date:<\/p>\n

IOF-FX<\/strong><\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
Outbound remittances<\/td>\n<\/tr>\n
Type of transaction<\/td>\nMay\/2025 alterations<\/td>\nJune\/2025 alterations<\/td>\nAfter LD 176 (effective as of June 27)<\/td>\n<\/tr>\n
Transactions not subject to specific regulations (such as services, royalties, etc.)<\/td>\n3,50%<\/td>\n3.5%<\/td>\n0.38%<\/td>\n<\/tr>\n
Repatriation of capital invested by a foreign investor in equity interests in Brazil<\/td>\nDividends and interest on net equity (JCP) \u2013 0%Capital reductions and other transactions \u2013 3.5%<\/td>\nDividends and interest on net equity (JCP) \u2013 0%Capital reductions and other transactions \u2013 0%<\/td>\nDividends and interest on net equity (JCP) \u2013 0%Capital reductions and other transactions \u2013 0.38%<\/td>\n<\/tr>\n
Remittances related to transactions by payment instrument issuers involving purchases of goods and services and cash withdrawals abroad<\/td>\n3.5%<\/td>\n3.5%<\/td>\n3.38% (reduced to zero until 2028)<\/td>\n<\/tr>\n
Travel checks, prepaid cards<\/td>\n3.5%<\/td>\n3.5%<\/td>\n3.38% (reduced to zero until 2028)<\/td>\n<\/tr>\n
Funds made available abroad and purchase of foreign currency in cash<\/td>\n3.5%<\/td>\n3.5%<\/td>\n1.1%<\/td>\n<\/tr>\n
Outbound remittances for investment purposes<\/td>\n1.1%<\/td>\n1.1%<\/td>\n1.1%<\/td>\n<\/tr>\n
Specific operations subject to a zero tax rate or exemption<\/td>\n0% or exemption<\/td>\n0% or exemption<\/td>\n0% or exemption<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

IOF-credit<\/strong><\/h2>\n\n\n\n\n\n\n\n\n
Type of transaction<\/strong><\/td>\nMay\/2025 alterations<\/strong><\/td>\nJune\/2025 alterations<\/strong><\/td>\nAfter LD 176 (effective as of June 27)<\/strong><\/td>\n<\/tr>\n
Loans between legal entities<\/strong><\/td>\nUp to 3.95%<\/td>\nUp to 3.38%<\/td>\nUp to 1.88%<\/td>\n<\/tr>\n
Advance payment to suppliers (with drawee\u2019s risk and forfaiting structures)<\/strong><\/td>\nUp to 3.95%*1<\/sup><\/td>\nUp to 3%*1<\/sup><\/td>\nNot subject to taxation<\/td>\n<\/tr>\n
Simples Nacional regime (transactions of up to R$30,000.00)<\/strong><\/td>\nUp to 1.95%<\/td>\nUp to 1.38%<\/td>\nUp to 0.88%<\/td>\n<\/tr>\n
MEI (Brazilian Individual Microentrepreneur) \u2013 transactions not exceeding R$30,000.00<\/strong><\/td>\nUp to 1.38%<\/td>\nUp to 1.38%<\/td>\nUp to 0.88%<\/td>\n<\/tr>\n
Cooperative-related transactions<\/strong><\/td>\nThe 0% rate applies exclusively to aggregate transactions below R$100 million<\/td>\nThe 0% rate applies exclusively to aggregate transactions below R$100 million<\/td>\n0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

IOF-insurance<\/strong><\/p>\n\n\n\n\n
Type of transaction<\/strong><\/td>\nMay\/2025 alterations<\/strong><\/td>\nJune\/2025 alterations<\/strong><\/td>\nAfter LD 176 (effective as of June 27)<\/strong><\/td>\n<\/tr>\n
Life insurance plans with survival coverage become subject to taxation<\/td>\n5% (above certain investment thresholds)<\/td>\n5% (above certain investment thresholds), except for contributions made by employers<\/td>\n0%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

However, the Office of the Attorney General (\u201cAGU<\/em><\/strong>\u201d) filed a legal action before the Federal Supreme Court (\u201cSTF<\/em><\/strong>\u201d) seeking to declare the Legislative Branch’s enactment of LD 176 unconstitutional. In addition, on Friday, June 27, 2025, the Socialism and Liberty Party (\u201cPSOL<\/em><\/strong>\u201d) filed Direct Action for Unconstitutionality (\u201cADI<\/em><\/strong>\u201d) No. 7,839 with the STF, requesting the suspension of the effects of LD 176 and its declaration of unconstitutionality.<\/p>\n

Our Tax<\/a><\/span> team is closely monitoring developments related to the IOF. For further information on this matter or other topics of interest, please contact one of our professionals.<\/p>\n","protected":false},"excerpt":{"rendered":"

On June 25, 2025, the Brazilian House of Representatives and the Federal Senate approved the Legislative Decree that suspended the effects of Decrees No. 12,466 of May 22, 2025; No. 12,467 of May 23, 2025; and No. 12,499 of June 11, 2025, which had increased the Tax on Financial Transactions (\u201cIOF\u201d) rates on certain operations. […]<\/p>\n","protected":false},"author":49,"featured_media":18566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[214],"tags":[275,276,277,279,280,281,282,274],"class_list":["post-24173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alerta","tag-breno-sarpi","tag-dante-zanotti","tag-emmanuel-abrantes","tag-gustavo-haddad","tag-gustavo-paes","tag-jayme-freitas","tag-ricardo-bolan","tag-tax"],"acf":[],"yoast_head":"\nIOF changes: congress suspends rate increases<\/title>\n<meta name=\"description\" content=\"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IOF changes: congress suspends rate increases\" \/>\n<meta property=\"og:description\" content=\"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Lefosse\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-01T21:23:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-10T18:26:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lefosse.com\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"840\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Danielle Polster | Lefosse\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Danielle Polster | Lefosse\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/\"},\"author\":{\"name\":\"Danielle Polster | Lefosse\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/#\\\/schema\\\/person\\\/18366902cd2506c6585c212cc87a6e89\"},\"headline\":\"IOF: Congress Blocks Rate Hikes, Prompting Government Appeal to the Supreme Court\",\"datePublished\":\"2025-07-01T21:23:16+00:00\",\"dateModified\":\"2025-12-10T18:26:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/\"},\"wordCount\":457,\"image\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#primaryimage\"},\"thumbnailUrl\":\"\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg\",\"keywords\":[\"Breno Sarpi\",\"Dante Zanotti\",\"Emmanuel Abrantes\",\"Gustavo Haddad\",\"Gustavo Paes\",\"Jayme Freitas\",\"Ricardo Bolan\",\"Tax\"],\"articleSection\":[\"Alerta\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/\",\"url\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/\",\"name\":\"IOF changes: congress suspends rate increases\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#primaryimage\"},\"thumbnailUrl\":\"\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg\",\"datePublished\":\"2025-07-01T21:23:16+00:00\",\"dateModified\":\"2025-12-10T18:26:29+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/#\\\/schema\\\/person\\\/18366902cd2506c6585c212cc87a6e89\"},\"description\":\"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#primaryimage\",\"url\":\"\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg\",\"contentUrl\":\"\\\/wp-content\\\/uploads\\\/2024\\\/09\\\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg\",\"width\":1400,\"height\":840},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/news\\\/alerts\\\/20017-2\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\\\/\\\/lefosse.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"IOF: Congress Blocks Rate Hikes, Prompting Government Appeal to the Supreme Court\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/lefosse.com\\\/en\\\/\",\"name\":\"Lefosse\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/lefosse.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/lefosse.com\\\/en\\\/#\\\/schema\\\/person\\\/18366902cd2506c6585c212cc87a6e89\",\"name\":\"Danielle Polster | Lefosse\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g\",\"caption\":\"Danielle Polster | Lefosse\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"IOF changes: congress suspends rate increases","description":"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/","og_locale":"en_US","og_type":"article","og_title":"IOF changes: congress suspends rate increases","og_description":"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.","og_url":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/","og_site_name":"Lefosse","article_published_time":"2025-07-01T21:23:16+00:00","article_modified_time":"2025-12-10T18:26:29+00:00","og_image":[{"width":1400,"height":840,"url":"https:\/\/lefosse.com\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg","type":"image\/jpeg"}],"author":"Danielle Polster | Lefosse","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Danielle Polster | Lefosse","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#article","isPartOf":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/"},"author":{"name":"Danielle Polster | Lefosse","@id":"https:\/\/lefosse.com\/en\/#\/schema\/person\/18366902cd2506c6585c212cc87a6e89"},"headline":"IOF: Congress Blocks Rate Hikes, Prompting Government Appeal to the Supreme Court","datePublished":"2025-07-01T21:23:16+00:00","dateModified":"2025-12-10T18:26:29+00:00","mainEntityOfPage":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/"},"wordCount":457,"image":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#primaryimage"},"thumbnailUrl":"\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg","keywords":["Breno Sarpi","Dante Zanotti","Emmanuel Abrantes","Gustavo Haddad","Gustavo Paes","Jayme Freitas","Ricardo Bolan","Tax"],"articleSection":["Alerta"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/","url":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/","name":"IOF changes: congress suspends rate increases","isPartOf":{"@id":"https:\/\/lefosse.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#primaryimage"},"image":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#primaryimage"},"thumbnailUrl":"\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg","datePublished":"2025-07-01T21:23:16+00:00","dateModified":"2025-12-10T18:26:29+00:00","author":{"@id":"https:\/\/lefosse.com\/en\/#\/schema\/person\/18366902cd2506c6585c212cc87a6e89"},"description":"The matter is now under review by the Supreme Court. Check out a summary of the IOF changes so far.","breadcrumb":{"@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#primaryimage","url":"\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg","contentUrl":"\/wp-content\/uploads\/2024\/09\/24.09.12_Radar-Lefosse_Banner-Post_Tributario_01.jpg","width":1400,"height":840},{"@type":"BreadcrumbList","@id":"https:\/\/lefosse.com\/en\/news\/alerts\/20017-2\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"In\u00edcio","item":"https:\/\/lefosse.com\/en\/"},{"@type":"ListItem","position":2,"name":"IOF: Congress Blocks Rate Hikes, Prompting Government Appeal to the Supreme Court"}]},{"@type":"WebSite","@id":"https:\/\/lefosse.com\/en\/#website","url":"https:\/\/lefosse.com\/en\/","name":"Lefosse","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lefosse.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/lefosse.com\/en\/#\/schema\/person\/18366902cd2506c6585c212cc87a6e89","name":"Danielle Polster | Lefosse","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cb0d3ffca900cfb26257303d2194d46dd9b734865d972c3ed2ec4a74b6141aac?s=96&d=mm&r=g","caption":"Danielle Polster | Lefosse"}}]}},"_links":{"self":[{"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/posts\/24173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/comments?post=24173"}],"version-history":[{"count":2,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/posts\/24173\/revisions"}],"predecessor-version":[{"id":25759,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/posts\/24173\/revisions\/25759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/media\/18566"}],"wp:attachment":[{"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/media?parent=24173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/categories?post=24173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lefosse.com\/en\/wp-json\/wp\/v2\/tags?post=24173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}