Brazil: Presidential Decree reduces Tax Rates on Foreign Exchange Transactions (IOF-Câmbio)


In brief

Decree No. 10,997/2022, published today, 03/16/2022, reduces the rates of the Tax on Foreign Exchange Transactions (“IOF-Câmbio”).
The Decree establishes an immediate reduction for some transactions, such as the reduction to zero of the rate applicable to short-term foreign loan operations. In other cases, however, the rate reduction is gradual over the next few years, as in the case of credit or debit card transactions. It is also expected that the IOF-Exchange rate will be decreased to zero for all transactions as of 2029.

The Decree will come into effect three days after its publication, i.e. on 03/19/2022, and applies to exchange settlements carried out after this date.
Below we detail the new tax rates foreseen by Decree No. 10,997/2022.

More details 

Decree No. 10,997/2022 inserted article 15-C to Decree No. 6,306/2007, which regulates the Tax on Credit, Exchange, and Insurance Transactions or on Securities – IOF.
The new article reduces the rates of the IOF levied only on Foreign Exchange transactions (IOF-Exchange), as summarized  in the chart below:

Share on Social Media
Trench Rossi Watanabe
São Paulo
Rua Arq. Olavo Redig de Campos, 105
31º andar - Edifício EZ Towers
Torre A | O4711-904
São Paulo - SP - Brasil

Rio de Janeiro
Rua Lauro Muller, 116 - Conj. 2802
Ed. Rio Sul Center | 22290-906
Rio de Janeiro - RJ - Brasil

Saf/s Quadra 02 - Lote 04 - Sala 203
Ed. Comercial Via Esplanada | 70070-600
Brasília - Distrito Federal - Brasil

Porto alegre
Av. Soledade, 550
Cj. 403 e 404 | 90470-340
Porto Alegre - RS - Brasil

Ícone do Instagram
Ícone do Podcast
Ícone do Facebook
Ícone do YouTube
Ícone do Linkedin