Last Wednesday (16/03), Decree no. 10,997/22 was published, which aims to zero the incidence of IOF (Tax on Financial Transactions) on exchange transactions.
As it is an extra-fiscal tax, the IOF is not subject to the rules of constitutional anteriority (nonagesimal and of the fiscal year), so that the new provisions come into force on today's date (March 18).
The reduction in the rates will be carried out gradually, and for short-term loans obtained abroad, currently taxed at 6%, the tax relief will apply immediately. Other operations will be subject to the following rules:
The measure aims to further free the flow of foreign capital and invisible transactions, one of the obligations required for the country's entry into the OECD (Organisation for Economic Cooperation and Development).
Click here to to access Decree 10,997/22 in its entirety. For further information, please contact the Tax Advisory Services team at our office(tributarioconsultivo@btlaw.com.br).
