The Brazilian Government has enacted Decree No. 10,997, which reduces to zero the rates of tax on exchange transactions (“IOF-Exchange”) for the next years, according to the type of transaction.

This measure was already awaited by the market and is focused on Brazil’s alignment with Economic Cooperation and Development (OECD) guidelines – the country is in the process of joining the organization.

Below we detail the changes to the IOF-Exchange rate, as per the list set forth by Section 15-B of the IOF Regulations:

  1. Foreign loans: zero, immediately (the 6% rate applicable to loans with a minimum average term of less than 180 days was removed);
  2. In case of foreign exchange transactions related to the use of credit or debit cards abroad; international cards used for cash withdrawal abroad; and acquisition of foreign currency for prepaid international cards, for personal expenses abroad, the current rate of 6.38% will be reduced by one per cent per year. Thus, it will be of 5.38% as of 2 January 2023; 4.38% as of 2 January 2024; and so on, being reduced to zero as of 2 January 2028.
  3. Also, in case of foreign exchange transactions for the acquisition of foreign currency; and transfer of resources abroad by residents in Brazil, the rate will be reduced from the current 1.1% to zero as of 2 January 2028.

All other cases listed in Section 15-B of IOF Regulations will have the corresponding rates reduced to zero as of 2 January 2029.

This measure shall benefit the free movement of capital entering and leaving the country, allowing its alignment with international practices.

For further information and clarifications, please contact:

Luiz Donelli –
Eduardo Abreu Sodré-
Arthur Barreto –


Se inscreva e fique sempre atualizado com novos artigos