New rules applicable to the IOF reduction on exchange operations

This morning (July 29), Decree No. 11,153/22 was published, which aims to gradually reduce the IOF (Tax on Financial Transactions) on certain exchange operations.

Additionally, the text updates the rules applicable to exchange operations destined to the fulfillment of the obligations of credit or debit card administratorscommercial or multiple banks as credit card issuers, to:

"Foreign exchange transactions intended for the fulfillment of obligations of institutions participating in payment arrangements of cross-border scope as issuers thereof, arising from the acquisition of goods and services from abroad made by their users." (emphasis added)

The following table summarizes the changes:

Because it is an extra-fiscal tax, the IOF is not subject to the constitutional anteriority rules (nonagesimal and fiscal year), so the new provisions go into effect today (July 29).

Click here to access Decree No. 11,153/22 in its entirety. For further information, please contact our Tax Consultants team([email protected]).