Two new decrees – No. 12,466, dated May 22, 2025, and No. 12,467, dated May 23, 2025 – have amended the Brazilian financial transactions tax (IOF) rules levied on credit, insurance, and foreign exchange transactions.
The changes have been in effect since May 23, 2025, except for advance payments and other financing transactions granted to suppliers, which will only enter into force as of June 1, 2025.
Below is a high-level summary of the main changes to the IOF for credit transactions, focusing on the impacts for credit fintech business models in Brazil.
 | Definition of the IOF tax regime applicable to credit transactions granted to individuals classified as Microentrepreneurs (MEI): Before: uncertainty about the application of the individual tax regime or the Simplified Taxation System (Simples Nacional) Now: for transactions up to BRL 30,000 – 0.38% fixed + 0.00274% per day, as applicable, limited to 1.38% per year |
 | No changes in the IOF regarding credit transactions granted to individuals in general. Now: 0.38% + 0.0082% per day, limited to 3.37% per year |
 | Increase of the IOF in credit transactions granted to legal entities: > Legal entities (in general): Before: 0.38% fixed + 0.0041% per day, limited to 1.88% per year Now: 0.95% fixed + 0.0082% per day, limited to 3.95% per year > Simplified Taxation System (Simples Nacional), for transactions up to BRL 30,000: Before: 0.38% fixed + 0.00137% per day, limited to 0.88% per year Now: 0.95% fixed + 0.00274% per day, limited to 1.95% per year |
Cescon Barrieu teams are available for clarifications and guidance regarding the changes highlighted in this newsletter.
