Decree No. 8,023/2013, published on June 04, 2013, changed the Tax on Financial Transactions (“IOF”) Regulation (Decree No. 6,306/2007), reducing to zero the IOF tax rate applicable to the settlement of currency exchange transactions made by foreign investors for funds entering the country, including those transactions made through simultaneous or symbolic exchange operations, both for the creation of guarantee margin, initial or additional, as required by the stock, futures and commodities exchanges, and for application in the financial and capital markets in Brazil. 

The new Decree re-wrote items XI and XII of Section 15-A of the IOF Regulation, which became effective with the following wording: 

Article 15-A. The IOF tax rate is reduced to thirty-eight hundredths of one percent, subject to the following exceptions:

(...)

XI - in the settlement of currency exchange transactions by foreign investors for the inflow of funds to the country, including through simultaneous or symbolic operations, for the creation of guarantee margin, initial or additional, as required by the stock, futures and commodities exchanges: zero;

XII - in the settlement of currency exchange transactions by foreign investors for the inflow of funds to the country, including through simultaneous or symbolic operations, for application in the financial and capital markets, except for the operations mentioned in sections XIII, XIV, XV, XVII, XVIII and XXIII of the main clause: zero;

For more information, please contact Roberta Caneca or Thais Rodrigues.

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