Legislative decree immediately suspends the effects of recent presidential decrees that amended the rates and rules of the IOF.
By Rafael Maniero and Mauricio Nucci.
—
Legale Overseas, no. 939.
On June 26, 2025, the National Congress published Legislative Decree No. 176, which suspends the effects of Decrees Nos. 12,466, 12,467, and 12,499, all issued this year. The suspended regulations included various changes to the Tax on Credit, Foreign Exchange, Insurance, and Securities Transactions (IOF), with emphasis on the modification of tax rates.
The measure, which has immediate effect, is based on negative market reactions to the increased tax burden and the lack of agreement among the branches of government to enable a viable solution.
Thus, the previous IOF rates have been reinstated. Notably, the general IOF-Foreign Exchange rate of 0.38% has been restored, along with all its previous concessions and exemptions, in addition to the removal of IOF incidence on risk drawer operations.
Therefore, there is a relief for taxpayers involved in credit and foreign exchange operations. On the other hand, IOF amounts collected at the increased rates during the validity of the presidential decrees cannot be refunded to taxpayers.
Finally, it is recommended to closely monitor the developments on this matter, especially given the Government’s indication of a possible judicial challenge.
The team at Vaz de Almeida Advogados remains attentive to legislative and judicial movements, providing strategic and up-to-date support to its clients.
—
Follow us on LinkedIn >
People & Community >
Meet Our Leaders >
Awards, Seals, and Recognitions >
News: Quality Content on Our Portal >
—
Tax Law >
Corporate Law >
Automotive Sector Relations >
Conflict Prevention and Resolution >
Labor Relations, Global Mobility, and People Management >
Intellectual Property >
ESG, Environmental, and Sustainability >
Innovation, Digital Law, and Cybersecurity >
Infrastructure, Real Estate, and Construction Law >
Administrative, Public, and Regulatory Law >
—
Our publications aim to communicate the legal perspective on relevant developments and provide context to the most significant legal events that may affect companies and organizations. Specific cases require personalized technical attention to the facts and should seek customized legal advice before taking any legal or paralegal action. If you, your company, or your board of directors need counsel, contact a trusted attorney.
«Legale», «Legale Overseas», «Articles», «Especial», «Tax Panel», «Tax Alert», «Projects» e «News & Alerts» are periodic publications intended as a service to the business community. These materials may include links to third-party websites to facilitate access to referenced services and publications. However, we are not responsible for the integrity of third-party links, which may encounter issues such as server failures, network security vulnerabilities, or other accessibility problems.
—
+55 19 3252-4324
Barão de Itapura, 2323
8th floor, Guanabara
Campinas, SP
Brasil
