Two new decrees – No. 12,466, dated May 22, 2025, and No. 12,467, dated May 23, 2025 – have amended the IOF rules for credit, insurance, and foreign exchange (FX) transactions.
The changes have been in effect since May 23, 2025, except for those relating to advance payment and other financing transactions granted to suppliers, which will only enter in force as of June 1, 2025.
Below is a high-level summary of the main changes to the IOF rates for FX transactions, focusing on the most usual types of FX transactions.
| CARDS | IOF/FX | |
 | International credit and debit cards: | Before: 3.38% Now: 3.5% |
| International pre-paid cards, travelers’ checks for personal expenses: | Before: 3.38% Now: 3.5% | |
| GENERAL REMITTANCES | ||
 | Remittance to a person’s own account abroad (disponibilidade) and purchases of foreign currency in the form of cash | Before: 1.1% Now: 3.5% |
| Remittance for investment purposes: | Before: 0.38% or 1.1%, depending on the nature of the remittance1 Decree 12,466 (Amended): 3.5% Decree 12,467 (Now): 1.1% | |
| FOREIGN LOAN | ||
 | Short-term foreign loan – minimum average term of up to 364 days: | Before: 0% Now: 3.5% |
| Medium/long-term foreign loan – 365 days or more: | Before: 0% Now: 0% | |
| DIRECT INVESTMENT | ||
 | Foreign Direct Investment | Before: Inbound: 0.38% Outbound: 0.38% Dividends/Interest on Equity: 0% Now: Inbound: 0.38% Outbound: 3.5% Dividends/Interest on Equity: 0% |
| PORTFOLIO INVESTMENT (Joint Resolution No. 13) | ||
 | No changes | Now: 0% (Inbound or outbound) |
| INVESTMENT FUNDS | ||
 | Transfers by investment funds for offshore allocation: | Before: 0% Decree 12,466 (Amended): 3.5% Decree 12,467 (Now): 0% |
| OTHERS | ||
 | Non-specified transactions: | Before: 0.38% Now: Inbound – 0.38% Outbound – 3.5% |
Our teams are available for clarifications and guidance regarding the changes highlighted in this newsletter.
1. In general, the rate is 0.38% or 1.1%, depending on the type of transaction. Decree 12,466 raised the rate to a unified 3.5% for purchases of foreign currency in the form of cash, transfers to a person’s own account abroad and withdrawals abroad. Decree 12,467 included item XXI-A, returning the rate to 1.1% for remittances for investment purposes (this may be further regulated by the Brazilian Federal Revenue).
