Brazilian Government reduced to zero the IOF/Foreign Exchange Taxes on Foreign Loans


published on 18 March 2022 | reading time approx. 1 minute


The new decree no. 10.997/2022 is effective from 19 March 2022, it reduces the IOF/Exchange (Brazilian Tax on Financial Operations) rate in some situations.



The most important measure was the reduction of the IOF/exchange rate to zero on short-term foreign loans (up to 180 days), as per article 15-B, XII of decree nº 6,306/07. Previously, the tax was levied at a rate of 6 percent at the time these funds entered Brazil. Loans with terms superior to 180 days already benefited from a zero rate previously.
This was not the only change in the decree, other rate reductions will be made gradually until they are completely zeroed in 2029. Below is a summary: 
  • loans from Brazil to abroad: IOF/Exchange rate of 0.38 percent (article 15-B. “caput”, becoming zero only as from 2 January 2029).
  • loans from abroad to Brazil, regardless of the term: was reduced from 6 percent to zero effective immediately. 
  • credit/debit cards and prepaid operations: the rate will reduce 1 percent per year until it is completely reduced to zero in 2028.
The decree is part of a series of measures that aim to prepare the entry of Brazil in OECD (Organisation for Economic Co-operation and Development).

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