COVID-19 forces temporary tax hikes
Brazil’s federal tax on financial transactions, Imposto Sobre Operações Financeiras—IOF, is being temporarily increases between 20 September and 31 December 2021. The raise is aimed at raising funds to help support people most affected by the ongoing COVID-19 crisis – the Auxilio Brasil social program.
Financial services subject to IOF
- Insurance premiums
- Securities trading
- Credit and loans
- Foreign exchange
- Certain bank transfers
Brazil IOF rate rise
The new rates are as follows:
- Corporate borrowers charge daily rate: 0.00559% from 0.0041%
- Individual borrowers charge: 0.01118% from 0.0082%
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