IOF: Tax on Financial Transactions - a complete guide for companies

Atualização em 16/07/2025: Após decisão do STF, as alíquotas do IOF em operações de câmbio e remessas internacionais voltaram ao patamar anterior previsto no Decreto nº 11.241/2022. As operações de saída passaram a ser tributadas a 3,5% — exceto para investimento no exterior (1,10%) e recompra/entrada (0,38%).

O Tax on Financial Operations (IOF) is a Brazilian federal tax that is levied on various business operations. credit, foreign exchange, insurance and investments. In other words, whenever a company or individual carries out certain financial operationsIOF may be levied on transactions such as taking out a loan, buying foreign currency, taking out insurance or redeeming an investment. This tax has dual function: in addition to generating revenue for the Union, it is used as a economic policy instrument.

 

 

The government may adjust the IOF rates to stimulate or curb specific economic activitiesIt also measures the demand for credit in the economy (since a high IOF collection indicates a greater volume of financial operations carried out in a given period). In short, the IOF serves both to raising funds as for regulating the financial marketThis influences the cost of financial operations in line with monetary and fiscal policy objectives.

In this complete guide, you will understand how IOF works in practice, what its rates are, when it is levied and how your company can plan to reduce financial impacts.

Listen now and learn how to identify where the IOF is levied and how a good financial and tax planning can help reduce its impact legally. An essential guide for companies and individuals carrying out financial operations in Brazil!

 

How IOF works in practice

 

The IOF is levied on different types of financial transactionsEach has its own specific rules. Below, we explain how IOF is charged in the main categories: credit, exchange, insurance and investment operations.

 

IOF on Credit Transactions

 

In credit operations - which include loans, financing, use of overdrafts, credit card revolving accountsamong others - the IOF is charged at the time the resources are made available to the borrower. The incidence occurs on the total amount of the debt releasedThe tax is made up of two parts:

• Fixed IOF (on contract)A fixed percentage rate is applied only once to the amount of the loan or financing when the credit is released. For example, when taking out a loan, a fixed percentage is charged on the amount released immediately. Historically, this fixed rate was 0.38% for most operations.

• Daily IOF (pro rata): a rate that is levied day by day on the outstanding balance for as long as the debt is outstanding, calculated in proportion to the days elapsed. This daily charge accumulates up to a ceiling equivalent to one year's incidence (or until the debt is settled early, whichever comes first). In practice, it works like a percentage per year converted into a rate per day. For example, if the daily rate is 0.0082%, this corresponds to approximately 3% per year (0.0082% * 365 days). Important: even for long loans (e.g. 24 or 36 months), the daily IOF is applied at most for the first 365 days of the contract - after one year, it is no longer charged, as it has already reached the annual ceiling established by law.

In the case of individuals (PF)IOF-credit rates have not been changed recentlyThis is the same as before. In general, individuals pay 0.38% at credit release + 0.0082% per day on the amount owed (which results in approximately 3.0% per year in the daily allotment, reaching a maximum load of around 3.38% per year adding the fixed portion).

After the decree was suspended via Legislative Decree nº 176/2025 (in force since June 27, 2025), the IOF returned to its previous level: 0.38% at contracting + 0.0041% per daytotaling approximately 1.88% per year for PJ.

Currently, companies in general pay 0.95% at contracting + 0.0082% per daywhich results in up to 3.95% per year de IOF incidente em operações de crédito corporativo. Ou seja, se uma empresa toma um empréstimo e permanece endividada por um ano inteiro, pagará no máximo 3,95% do valor emprestado em IOF nesse período.

Essa mudança elevou a alíquota das empresas (antes era 0,38% + 0,0041% ao dia, cap de 1,88% a.a.) para o novo patamar igual ao das pessoas físicas em termos de taxa diária, aumentando significativamente o custo tributário dos financiamentos empresariais.

In addition to Decree No. 12.499/2025, the following was published Provisional Measure No. 1.303/2025The new law, which changed several tax rates involving IOF, IR and CSLL. Below, we have compiled the main changes in a clear and objective comparative table, effective as of October 1, 2025:

 

Summary table of changes to the IOF - Decree No. 12.499/2025

 

IMPOSTO	ALÍQUOTA ANTERIOR	NOVA ALÍQUOTA	INÍCIO DA VIGÊNCIA
IOF - Corporate Credit	0.38% fixed + 0.0041% per day	0,95% fixa + 0,0041% ao dia	27/06/2025
IOF - Simple Credit / SME	0,38% fixa + 0,00137% ao dia (proposta não implementada)	0,38% fixa + 0,0082% ao dia	27/06/2025
IOF - Drawn risk/FIDC	Exempt	Exempt	27/06/2025

 

Note: Small businesses are treated differently. Simples Nacional companiesFor credit operations of up to R$ 30,000, they have a lower rate: 0.38% fixed + 0.00274% per dayresulting in up to 1.95% per year. Individual Microentrepreneurs (MEI) have also been officially included in this reduced range, eliminating doubts that used to lead them to pay as an individual; now the MEI is entitled to a rate of 0.38% + 0.00274% per day on their loans, instead of the full rate.

In addition, some specific credit operations are still exempt from IOF by legal determination, even for companies - for example, export financing, rural credit through agricultural cooperatives and operations of government development programs (Constitutional Funds of the North, Northeast and Midwest) remain with zero IOF for encourage these sectors. Também não há IOF em adiantamentos de salário a empregados ou nas operações exclusivamente entre instituições financeiras.

Em resumo, no dia a dia das empresas, any loan, financing, use of bank credit or installment payment that does not fall under a specific exemption will be subject to the IOF taxThe calculation combines an initial fixed rate and a daily rate for as long as the amount remains outstanding.

É importante destacar que diversas operações de câmbio seguem isentas ou com IOF zero, mesmo após essas mudanças. Permanecem não tributadas as operações cambiais relacionadas a exportação e importação diretas de bens, operações interbancárias, ingresso de investimentos estrangeiros no país (por exemplo, aporte de capital ou investimento em bolsa feito por estrangeiros), bem como remessas de dividendos e juros ao exterior para investidores estrangeiros.

In 16 de julho de 2025, o Supremo Tribunal Federal (STF) suspendeu os efeitos do Decreto Legislativo nº 176/2025 e restabeleceu a vigência do Decreto nº 11.241/2022, que havia sido revogado pelo Congresso Nacional. Com isso, as alíquotas do IOF-câmbio voltaram ao patamar unificado de 3,5% para a maioria das operações de saída de recursos do país.

Veja como ficaram:

• Cartão internacional (crédito/débito/pré-pago): 3,5%

• Compra ou saque de moeda estrangeira em espécie: 3,5%

• Remessa para a mesma titularidade (disponibilidade no exterior): 3,5%

• Manutenção de residente no exterior: 3,5%

• Serviços internacionais (conforme natureza da operação): 3,5%

• Investimento no exterior: 1,10%

• Recompra de moeda/cartão (entrada de recursos): 0,38%

A decisão passou a valer imediatamente, conforme entendimento da maioria dos ministros.

 

IOF on Insurance Transactions (VGBL / Pension Plan)

 

In the insurance sector, the IOF is levied on the insurance premium amount paid, i.e. on the value of the policy charged by the insurer. The rate varies according to the type of insurance taken out:

• To general insurance (damage insurance or "elementary branches")In the case of insurance policies such as car, business, home, warranty, etc., the IOF rate is 7.38% on the premium paid. This means that when you take out asset insurance, around 7.38% of the amount you pay to the insurance company will be collected as IOF and passed on to the government. This percentage is applied equally to both individuals and companies - in other words, companies that take out insurance for their assets also pay 7.38% of IOF on the premium.

• For life insurance and private pension plans (VGBL, PGBL, plans with survivor coverage), the IOF has always been 0%without any limit on contributions. With the suspension of Decree No. 12,499 and the effects of Decree No. 12,466, through Legislative Decree No. 176/2025 on June 27, 2025, no IOF of 5% on high contributions - this has been reversed. Currently, there is no taxation on contribution limits in 2025, and the IOF remains at 0%even for high values.

• To health insurance (private health plans)the IOF rate is 2.38% on premiums/monthly payments. This percentage, which is lower than that of general insurance, applies to both individual and group health plans. Again, it doesn't matter whether the contracting party is an individual or a company - what changes is only the line of insurance.

In short, when taking out insurance, the company must pay attention because a portion of the cost of the premium is IOF. In the case of property insurance In the case of life and liability insurance (the most common for companies), the IOF of 7.38% makes the policy more expensive. In the case of personal insurance (life and supplementary pension plans), there is usually no such charge, with the new exception of large VGBL contributions, which are now taxed. It is worth remembering that insurance linked to residential real estate financing is also exempt from IOF by law (it is part of the housing incentive package).

 

IOF on Investments and Securities

 

In financial investments, the IOF is levied mainly on discourage very short-term operations - in other words, to prevent investors from revolving funds in very quick investments just for immediate financial gain (the so-called "financial circus"). This is why IOF on fixed income investments redeemed in less than 30 days. The way it works differs from the other modalities: it is not a fixed rate on the amount invested, but a percentage. regressive on income of the application, decreasing day by day.

How it works: if a company (or person) invests money in a fixed-income security - for example, a CDB, a fixed-income fund or the Treasury Direct - and redeem the money before completing 30 daysso the IOF eats up part of the interest earned during this period. The rate starts very high on the first day and decreases to zero on the thirtieth day. The regressive IOF table on investments redeemed within 30 days is approximately as follows:

• Rescue at day 1 after application: IOF of 96% (Virtually all of the gain is taken by tax, leaving only 4% of the gross profit for the investor).

• Rescue at day 2IOF ~93% of income (the rate falls by around 3 percentage points with each additional day).

• Rescue at 29thIOF of 3% on income.

• Rescue at day 30 or after: 0% of IOF - in other words, after 30 full days there is no more IOF on the investment gain.

It is important to note that this IOF is not levied on the principal investedonly on the income (interest) obtained on the investment. So, if the company redeems an investment before 30 days, it doesn't lose the money invested itself, but it will have a good part of the interest confiscated by the IOF as shown in the table above. This discourages applications for very short periods of time, encouraging the funds to remain invested for at least one month. For investments held for more than 30 days, there is no IOF charge on income - the investor only pays income tax on profits, according to the specific rules of the type of investment.

In addition to the general rule above, there are a few points to mention about investments:

• Stock market: no IOF on gains on shares if they are held for more than one day. In fact, no IOF is normally applied to shares, except in very specific very short-term operations (such as day trading within the same day, but then the main taxation is via IR and brokerage fees). In general, the government does not charge IOF on investment in shares so as not to burden the stock and capital markets, or the quotas of long-term investment funds, etc.

• Gold financial assetThe purchase and sale of gold, when treated as a financial asset (and not as a physical good), has a specific IOF known as "IOF-gold"with a tax rate of 1% on the value of the operation. In other words, if your company acquires financial gold (used as an investment), it pays 1% of IOF. This is a particular feature of the legislation, which is different from the foreign exchange IOF and the others.

• CryptoactiveIOF is not currently levied on the purchase/sale of cryptocurrencies, as they are not recognized as legal tender or as ordinary securities. However, this is a field in regulatory evolution and is not part of the classic scope of the IOF (but foreign exchange transactions to buy crypto abroad, for example, would normally involve IOF).

In short, in the context of investments, the most relevant IOF for companies is the one levied if the company decides to move fixed-income investments with less than 30 days - in these cases, a large part of the income will be lost to tax. With a proper financial planningHowever, it is possible to avoid this by keeping investments for longer than one month whenever possible, in order to not pay IOF on the gain. Apart from this, the company must remember that certain specific assets (such as financial gold) have their own IOF, but productive and long-term investments (shares, funds, etc.) do not suffer this tax directly.

 

Updated IOF Rates (Table for 2025)

Below is a table with the IOF rates currently in force (last updated in June 2025), valid after the reversal of the changes promoted by the May/June decrees. The data reflects the rules re-established by Decree No. 6,306/2007, as formalized by Legislative Decree No. 176/2025. The table highlights the differences between individuals (PF) and legal entities (PJ), where applicable.

 

 

Type of Financial Operation	IOF - Individual (PF)	IOF - Legal Entity (PJ)
Credit (Loans and Financing)	0,38% na contratação + 0,0082% ao dia (≈ 3,38% ao ano)	0,95% na contratação + 0,0041% ao dia (≈ 1,5% ao ano)
Credit - Simples Nacional / MEI	Not applicable	0,38% fixa + 0,0082% ao dia
Credit Unions	Isentas até o limite de R$ 100 milhões por ano.	Isentas até R$ 100 milhões por ano. Acima disso, aplica-se o mesmo IOF das empresas em geral.
Foreign Exchange - Inflow of Funds	0,38% sobre valor em reais. Exportações e investimentos estrangeiros seguem com alíquota zero.	0,38%. Exportações e investimentos estrangeiros seguem com alíquota zero.
Foreign Exchange - Outflow of Funds	3,5% para envio de recursos, compra de moeda e remessas. 3,5% para cartão internacional.	3,5% para todas as operações de saída, incluindo cartão internacional.
Insurance - General (vehicles, property)	7.38% on the amount of the premium paid.	7.38% on the value of the premium, including for business insurance.
Insurance - Life and Pension (VGBL, PGBL)	Isento – não há cobrança sobre aportes, independentemente do valor.	Isento (inclusive em nome da empresa, sócios ou colaboradores).
Insurance - Health (medical plans)	2.38% on the amount paid in tuition fees or premiums.	2.38% on the amount paid for group or business plans.
Investimentos – Renda Fixa (resgate < 30 dias)	IOF regressivo: começa em 96% no 1º dia e cai até 0% em 30 dias.	Mesma regra das PF: IOF regressivo nos primeiros 30 dias.
Investments - Shares and Funds	IOF: 0% para renda variável, fundos e bolsa.	0% para renda variável. IOF regressivo para renda fixa com resgate até 30 dias.
Gold (financial asset)	1% sobre o valor da operação de compra e venda como ativo financeiro.	1% on the purchase and sale of gold as a financial asset.

 

Caption: PF = individual; PJ = legal entity. The rates shown are those in force according to regulations up to May 2025. Remember that the IOF is a tax amended by federal decreetherefore subject to change by the Government over time - especially in IOF-exchange and IOF-credit, which are used as regulatory instruments. Always consult up-to-date sources or expert advice for any subsequent changes.

 

Practical examples of IOF in day-to-day business

To better understand the impact of IOF on business operations, let's take a look at a few of them practical examples common:

• Bank loan for working capital: Suppose a company takes out a loan of R$ 100,000 with a term of 12 months to bolster its cash flow. The bank will charge 0.95% on release (R$ 950) and throughout the year, 0.0082% per day on the outstanding balance. If the loan lasts the whole year, the accumulated daily IOF will be close to 3% of the amount (around R$ 3,000). Adding up the installments, the total IOF cost comes to approximately R$ 3,950 that year. This amount will be included in the effective cost of credit, making the financing more expensive. In other words, in addition to bank interest, the company pays almost 4% more in taxes, which must be taken into account when planning its finances.

• Purchase of imported inputs (foreign exchange transaction): Imagine que uma indústria precise pagar US$ 50.000 a um fornecedor no exterior por matéria-prima. Ao realizar a remessa internacional via banco, haverá incidência de IOF-câmbio. Desde a decisão do STF em 16/07/2025, a alíquota aplicável para remessa ao exterior (exceto importações diretas de bens) voltou a ser de 3.5%. Importações diretas de bens seguem com alíquota isenta ou de 0%, conforme já previsto em lei. Assim, o IOF de R$ 8.750 será devido na remessa, encarecendo o custo da operação.

• Purchase of foreign currency in cash for a business trip: Se um empresário retira R$ 20.000 do caixa da empresa para comprar euros em uma casa de câmbio para uma viagem de negócios,terá de pagar IOF de 3,5% sobre essa compra, conforme a alíquota restabelecida pelo STF em julho de 2025. Nesse caso, o IOF seria R$ 700 (3,5% de 20 mil). Esse valor sai diretamente dos recursos da empresa como despesa tributária associada à viagem.

• Payment of expenses abroad with a corporate card: A Brazilian startup attends an event abroad and spends R$ 10,000 (converted) on its corporate credit card to cover hotel and meals. IOF of 3.5% on the invoice. This represents R$ 350 tax. When the invoice arrives, the company will have to pay this additional amount on top of the expenses, increasing the cost of the trip. It's a detail that often goes unnoticed until the card bill arrives.

• Taking out business insurance: A small factory makes a property insurance of its facilities valued at R$ 5 million, paying an annual premium of, say, R$ 20,000. Applying the IOF rate of 7.38%we have R$ 1.476 IOF included in the premium. The insurance company collects this amount and passes it on to the government. Therefore, of the total paid by the factory, R$ 1,400 is not for risk coverage, but tax. This amount needs to be accounted for as a tax expense related to the insurance.

• Redemption of financial investment before 30 days: A company invested R$ 100,000 in a CDB with daily liquidity to temporarily manage its cash, with the expectation of redeeming it in 15 days to pay suppliers. Suppose that in 15 days the CDB earned R$ 500 in interest. When you redeem it on the 15th day, IOF will be levied on the R$ 500 in income. According to the regressive table, redemption on the 15th implies IOF of around 50% on profit. That is, of the R$ 500 in interest, R$ 250 will go to the government as IOF, and the company will effectively be left with only R$ 250 in net profitability (before IR). In practice, half of the short-term financial gain is lost to tax because of the early redemption. This example illustrates why, if possible, it's better to wait 30 days to use invested funds, avoiding the incidence of IOF on income.

These examples show that the IOF can significantly affect the costs of routine business operations - whether by making loans and financing more expensive, increasing the cost of international transactions or reducing returns on investments. It is therefore essential that managers and entrepreneurs consider the IOF in your financial planning and seek efficiency, either by avoiding unnecessary operations that generate IOF or by taking advantage of exemptions and alternatives when feasible.

 

Frequently asked questions about the IOF

 

When is the IOF charged?

 

IOF is charged when the taxed financial transaction takes place. Isso significa que, sempre que você realiza uma transação enquadrada na incidência do IOF, o imposto é calculado e devido naquela ocasião.

Por exemplo, ao taking out a loanThe IOF is calculated and included when the credit is released (the fixed installment + any daily charges depending on the number of days). using the overdraft or revolving credit card, the IOF is levied daily on the outstanding balance for as long as the card is used. On

Nas international card purchasesThe IOF is calculated at the close of the invoice on which the expense is posted. In exchange rateIt is levied when the currency is converted (either when buying foreign currency or when sending or receiving it from abroad). And in

E no insurance paymentsThe IOF is included in the premium when the policy is issued. In other words, it is not a tax that is charged later on via a bill: is withheld and collected by the financial agent itself (bank, insurance company, broker) at the time of the transaction. It is worth remembering that some common day-to-day operations in which the IOF is levied are: use of a bank limit (overdraft), installment credit, contracted insurance, purchases with an international card, and quick redemptions from investments If you are in doubt, you may have to pay the IOF. "Is there an IOF on this?"A good tip is to check if the operation involves financial credit, foreign exchange, insurance or securities - if so, there will probably be IOF, unless the legislation provides for a specific exemption for that situation.

 

How to calculate the IOF?

 

The calculation of the IOF depends on the type of operation, but in general it follows the formula Transaction Value x IOF Rate aplicável. Para operações simples com alíquota fixa (por exemplo, IOF em câmbio, IOF em seguros), basta multiplicar o montante em questão pelo percentual da alíquota. Exemplo:

se sua empresa está enviando R$ 100.000 ao exterior com IOF de 3,5%, o imposto será R$ 100,000 x 3.5% = R$ 3,500. In the case of property insurance (7,38%)A prize of R$ 10,000 generates IOF of R$ 10,000 x 7.38% = R$ 738 tax. In the case of credit, o cálculo tem duas partes: (1) a alíquota fixa sobre o valor total emprestado, e (2) a alíquota diária sobre o saldo, proporcional aos dias.

Suponha um empréstimo de R$ 50.000 para ser pago em 6 meses contratado por uma empresa comum: de cara haverá 0.95% of R$ 50,000 = R$ 475 fixed IOF. In addition, 0.0082% will be charged daily on the outstanding balance. If the average balance over the 6 months is, say, R$ 25,000 (considering amortizations), the accumulated daily charge would be ~0.0082% * 180 days * 25,000 = R$ 369 (approximately). This would mean a total of around R$ 844 in IOF on this loan (which may vary depending on the actual amortization from month to month). For

Já para IOF on fixed income investmentsThe calculation is based on income: suppose a fund yielded R$ 1,000 in 10 days, the IOF (66% on the 10th day, according to the table) would be R$ 1,000 x 66% = R$ 660The investor is left with R$ 340 net profit before IR. In all cases, it's the financial institution involved (bank, broker, insurance company) that does the calculation and collection, but it's important that you understand how the figures are arrived at in order to check the amounts charged.

 

Is it possible to reduce or get rid of the IOF?

 

You can't escape the IOF directly when the transaction is subject to it - because it is a compulsory tax. Unlike some taxes that allow for planning to reduce the calculation base or use credits, the IOF is levied in the following ways objective sobre a operação financeira.

No entanto, existem algumas exemption strategies and situations a considerar:

(1) Avoid unnecessary or costly IOF transactions - for example, if your company has cash, avoid using overdrafts or emergency credit (because in addition to high interest rates, there is a daily IOF); plan your cash flow so that you don't need to redeem investments before 30 days, avoiding IOF on income. (2)

(2) Opt for exempt alternatives - For example, residential mortgages are exempt from IOF, so if an entrepreneur were to acquire a residential property via a mortgage, there would be no IOF (unlike an ordinary loan). Likewise, certain public or sectoral financing programs are exempt from IOF (as already mentioned: export credit, working capital via BNDES for some programs, rural credit for cooperatives, etc.), so it's worth checking if your purpose falls under any incentivized line. (3)

(3) Structuring operations differently - for example, foreign investors contributing funds to a company generally do not pay IOF (capital inflow as an investment is not taxed), but a short-term international loan would be taxed; thus, in some cases, capitalize the company instead of borrowing can avoid IOF (although it involves other corporate considerations). Another situation: if a partner is going to put money into the company temporarily, a capital increase or contribution via a convertible loan agreement can avoid IOF, while a formal loan to the CNPJ would generate IOF. (4)

(4) Taking advantage of legal benefits - For example, Simples companies and MEIs already have a reduced IOF rate on small loans by law. In a nutshell, there is no "way" to avoid paying IOF if you perform the standard operation - the path is plan to reduce incidenceFor example, you can use less short-term bank credit, hold investments for longer periods, consolidate international remittances (instead of several small ones, although the tax rate is proportional, you can save on associated bank fees), and so on. Consulting a tax advisor can help identify whether your operations could be restructured in a more tax-efficient way without breaking the law.

 

What common mistakes companies make related to the IOF?

Among the most common misconceptions companies make about the IOF are: (1)

(1) Do not include the IOF in the cost of operations: muitas vezes a empresa analisa apenas juros ou tarifas de um empréstimo ou investimento, e esquece de computar o IOF. Isso pode levar a surpresas desagradáveis, como um empréstimo que sai mais caro que o previsto ou um rendimento de aplicação menor que o esperado devido ao IOF.É fundamental incluir o IOF no cálculo do Total Effective Cost (TEC) of financing and in calculating the net return on investments (2)

(2) Confusing IOF with interest or negotiating IOFIOF: some managers may think that the IOF is "negotiable" with the bank or part of the interest rate - in fact, it is a tax set by law, which the institution only collects and passes on to the government There is no way for the bank to exempt the client from the IOF or reduce it (except in operations exempted by law). So there's no point in trying to argue with the manager about the IOF; it's better to understand and minimize the need for the taxed operation. (3)

(3) Falling prey to IOF scamsUnfortunately, there are reports of fraudsters offering "easy" loans and asking the company to pay the IOF in advance in order to release the credit. this is a scam! Charging IOF on loans it is never done via boleto in advance and then money is released. The IOF is always charged by the bank itself within the loan. If someone asks you to pay IOF in advance outside of this context, be suspicious immediately. (4)

(4) Not knowing about exemptions and paying tax when you couldn'tFor example, a company that takes out a redeemable life insurance policy in the name of its shareholders could have contributions exempt from IOF (up to a certain limit), but if it doesn't know the rule, it might opt for a traditional short-term financial investment and end up paying IOF on the income. Or companies that could use an exempt export credit line but take out a regular loan and pay IOF unnecessarily. Thus, a lack of information can lead to sub-optimal choices. (5)

(5) Inadequate classification of operationsIn accounting, it is important to correctly classify and record the IOF paid, usually as a financial or tax expense. Classification errors can make the company lose sight of how much it is spending on IOF over time, making management difficult. In addition, it is worth remembering that, although it is a tax, the IOF paid can be accounted for as a deductible expense in the company's income (reducing taxable profit in the year). IRPJ/CSLL)Some companies forget this detail when calculating corporate income tax, although it's more of an accounting detail than a "mistake" with the IOF itself.

In short, the main errors revolve around inattention and lack of planning. To avoid this, the company must always be aware of the incidence of IOF in each financial operation it carries out, calculate its impact and seek advice from consultants or accountants in order to structure its operations as efficiently as possible within what is permitted in law.

Recent updates and legislative changes to the IOF

The IOF is a peculiar tax, as its rates can be changed via presidential decreeThe IOF does not need to pass through Congress, as it is also regulatory in nature. This is why the IOF has historically undergone frequent adjustments in line with the economic and fiscal situation. In recent years, there have been some important changes:

• Gradual reduction of the IOF-Exchange Rate (2022-2024): At the end of 2021, the previous federal government announced a plan for a staggered reduction in IOF rates on foreign exchange transactions, with the aim of bringing Brazil into line with international standards (facilitating adherence to agreements such as the OECD) and lowering the cost for citizens and companies in global transactions. This plan foresaw, for example, that the IOF on credit card purchases abroad would fall from 6.38% to 5.38% in 2023, then to 4.38% in 2024, 3.38% in 2025, and so on until it was completely phased out. zero in 2028. In fact, these reductions were implemented in 2023 and 2024. The purchase of currency in kind and remittances to own accounts abroad were also reduced by 1.1% to lower levels. This especially benefited individuals traveling or investing abroad.

• Partial reversal and standardization of the IOF (2025): In 2025, the new government revised some of these reductions and promoted a increase and standardization of IOF rates. In May 2025, through Decree 12.466/2025, most of the tax rates were unified. IOF-Exchange at 3.5% to outflow of resources of the country. Thus, operations that were 0.38% or 1.1% rose to 3.5%, while those that were already at 3.38% were slightly adjusted to 3.5%. The justification for Ministry of Finance was harmonize taxation and avoid arbitration between similar modalities, as well as boosting revenue by around R$ 20.5 billion a year. In this package, as we have seen, IOF-Credit for companies was also raised from 1.88% p.a. to 3.95% p.a.It is equivalent to (and even slightly exceeds) that of individuals. High contributions to pension plans (VGBL) now have an IOF of 5%, where it was previously exempt. There has therefore been a reversal in the trend to reduce the IOF in certain sectors, motivated by the need to increase revenue and correct tax "distortions" between taxpayers.

Em outubro de 2022, por meio do Decreto nº 11.241/2022, unificou-se a maioria das alíquotas do IOF-Câmbio em 3,5% para operações de saída de recursos do país. Após a suspensão temporária pelo Congresso em 2025, o STF restabeleceu esse decreto em 16 de julho de 2025.

Table Tax Changes - Provisional Measure No. 1.303/2025

 

Tax	Alíquota Atual (2025)	Observations
IOF - Corporate Credit	0,95% + 0,0041% a.d.	Restabelecida em 16/07/2025 pelo STF (Decreto nº 11.241/2022)
IOF – Risco Sacado	Exempt	Permanece isento conforme entendimento vigente
IOF – FIDC	Exempt	Sem previsão oficial de tributação
IOF – VGBL (acima de R$ 300 mil)	Exempt	Estuda-se tributação futura para grandes valores, mas ainda isento
IR – LCI e LCA	Exempt	Propostas de tributação existem, mas continua isento
IR – Aplicações Financeiras	15% a 22,5% (tabela regressiva)	Mantida alíquota regressiva conforme Lei 11.033/2004
Sports Betting	18% (sobre GGR) + 15% IR para apostadores	Tributação válida conforme Lei nº 14.790/2023
CSLL – Fintechs	9% (pode haver majoração futura)	Há discussão para aumento de alíquota entre 15% e 20%, ainda sem aprovação

 

 

• Review and debate: The 2025 changes generated repercussions in the market. For example, the taxation of Brazilian investment funds that invest abroad (which would be taxed at 3.5% on the outflow of funds) was criticized, leading the government to partially retreatkeeping the IOF exemption for these funds, as provided for in the Provisional Measure that replaced the decree. This shows that the IOF, because it is "flexible", is often adjusted quickly and revised if the side effects prove undesirable.

• Future of the IOF: There is debate as to whether in the long term the IOF could be replaced or reduced with a broader tax reform (since it was created back in the 1960s in a context of capital flow control). For now, however, it remains an important economic policy tool. The recent trend indicates the use of the IOF as a short-term collection instrument - By 2025, it was clear that the fiscal objective weighed heavily. However, international commitments may once again put pressure on IOF-exchange rate reductions in the coming years, if Brazil resumes its plan to adhere to global standards.

After a strong reaction from financial market entities, the Federal Government announced that the Decree 12.466/2025 will be replaced by a Provisional Measurewith new rules on the IOF. The Provisional Measure will include a new exemption floor for VGBLs (R$ 600,000/month), corrections to the taxation of funds abroad and adjustments to the exchange rate. In addition, there is a proposal to bill to cut 10% in tax benefits between 2025 and 2026, to offset the impact of the possible repeal of the IOF increases. The scenario is still moving through Congress, and new changes could occur soon.

 

Conclusion: Tax planning and the support of CLM Controller

Attention: the reversal has been in effect since 27/06/2025but is under judicial review by the STF. We recommend follow the ADI and possible new decisions or decrees that change this scenario again.

The IOF, despite being a "small" scale tax on each operation, can have a cumulative significant impact in a company's finances. As we have seen, it is levied on loans, financing, insurance, international operations and short-term investments - critical areas of day-to-day business. Managing the IOF well is part of a good tax planning and financialUnderstanding where it occurs, how to calculate it and what strategies to adopt to minimize it within the law can mean cost savings and increased competitiveness for the business.

In this context, having experienced accounting and tax advice makes all the difference. A CLM Controllerwith its expertise in tax planning, tax analysis, accounting consultancy and strategic support for entrepreneursis able to help your company navigate complex issues such as IOF and other tax obligations. Our professionals closely monitor legislative updates and identify tax optimization opportunitiesThis ensures that you are always in compliance with the rules without paying more tax than necessary. Whether it's advising on the best financing format (considering the incidence of IOF), structuring foreign exchange transactions efficiently, or advising on tax management for your businessCLM Controller positions itself as a strategic partner for your company's success.

In a nutshellThe IOF should be seen not just as another unavoidable tax, but as an element to be actively managed in the financial routine. With information, planning and professional support, your company can reduce the burden of the IOF operations and make smarter decisions. If you are looking for this level of excellence in tax management, the CLM Controller services are available for strengthening financial health of your business, allowing you to focus on what you do best: undertaking and growing with peace of mind.