• Service: Tax, International Corporate Tax, Mergers and Acquisitions
  • Type: Regulatory update
  • Date: 4/3/2013

Tax News: 0% IOF/Credit Tax Rate – Infrastructure and Infrastructure-related Projects Financing 

Aiming at contributing to boost the investments in the infrastructure sector, the Brazilian Government issued Decree 7,975, on April 1st, 2013, which reduced to zero the IOF/Credit tax rate applied as of April 2nd, 2013, to local financing operations entered into with financial institutions for the purpose of financing the following transactions:

(i) acquisition, production and leasing of capital goods and associated working capital;

(ii) production of consumable assets for export purposes;

(iii) (electricity) power sector;

(iv) export structures of liquid bulks;

(v) engineering projects;

(vi) R&D projects;

(vii) investment projects associated with the creation of productive and technological capacity in sectors with high knowledge and engineering intensity; and

(viii) logistic infrastructure projects meant to be used for the construction of roads and railways, subject to concession by the Federal Government.


For more information, please contact a tax professional with KPMG in Brazil:

Marienne Coutinho,
Ericson Amaral,
Murilo Mello,
Roberto Haddad,
Julio C. de Cepeda,
Fabiana Pereira,
Carlos Eduardo Toro,
Valter Shimidu,
Cecilio Schiguematu,
Marcus Vinícius Gonçalves,
Marcus Oliveira,
Adriano Ponciano,


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