• Service: Tax, Indirect Tax
  • Type: KPMG information
  • Date: 3/7/2012

Tax News: Changes to the IOF legislation 

Changes to the Tax on Financial Transactions (IOF) legislation


The Decree 7,683 published on February 29th, 2012, introduced specific changes to the IOF (Tax on Financial Transactions) legislation – compiled in Decree 6,306/2007, as follows:

  • Extend the term of the foreign currency loans from two to three years. From now on, foreign currency loans obtained as from March 1st, 2012 which minimum average term is lower than three years are subject to Tax on Exchange Transactions (IOF) at 6% rate. For operations exceeding the three year-period, there is no such taxation since the applicable IOF rate is zero.


  • IOF rate is equal to 0% for foreign exchange transactions, including simultaneous operations, associated with investments in Brazilian Depositary Receipts – BDR.


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

São Paulo

Marienne Coutinho, +55 11 2183-3182,

Ericson Amaral, +55 11 2183-3375,
Murilo Mello, +55 11 2183-3261,
Fabiana Pereira, +55 11 2183-6571,
Fernando R. Martins, +55 11 2183-3284,

Valter Shimidu, +55 11 2183-3269,

Rio de Janeiro

Roberto Haddad, +55 21 3515-9469,

Julio C. de Cepeda, +55 21 3515-9133,


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