Ministry backwards and maintains a zero tax rate for the application of domestic funds investments abroad; The decision was taken at a meeting with the Civil House
The Ministry of Finance announced on the night of Thursday (22.MAI.2025) a retreat in part of the decree that changes the rules for the IOF (Tax on Financial Operations). One is that the rate for applying domestic fund investments abroad is as it was before. I.e, There will be no charge in the sport.
The decision was made at a meeting at the Planalto Palace. The ministers (House Civil), (Institutional Relations) and (Secom) were present.
It is a defeat to the Minister of Finance ,. The change comes just over 6 hours after the economic team announced the rules in an attempt to inject.
In technical terms, the farm will restore a decree () that determines zero tax to “Exchange, transfers and abroad operations regarding investment funds in the international market”.
Another decrease in the economic team was in relation to the shipments sent from Brazil to the abroad for investments, which will remain with the rate of 1.1%. The measure issued by the farm in the morning put the rate by 3.5%. Was seen by the financial market as an attempt to “Currency Control”.
The responsible for taking care of this area is the Central Bank. The economic team would have entered areas that are not their performance, according to experts.
“It is not realizing that putting IOF of 3.5% in all investment made by Brazilians abroad is the beginning of the closure of the capital account.”, In a post right after the signed measure.
This change in IOF would impact the dollar because it directly affects the flow of foreign currency entry and exit from Brazil, which influences the supply and demand for US currency.
