The coming and going from the decree that increased the Tax on Financial Operations (IOF) caused confusion among users on social networks. Amid the announcement of compensatory measures, falls and setbacks, many have been difficult to understand what, in fact, is valid.
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It all started on May 22, when the federal government announced – the same day it froze more than $ 30 billion in the budget – O, which annoyed the financial market. The expectation was to raise $ 20 billion with the decree in 2025.
Less than 12 hours later, the government retreated at two specific points: the increase in IOF on funds with abroad application and investment shipments from individuals outside the country.
The IOF rate on domestic funds abroad applications, which had been raised to 3.5%, was reversed to 0%. The aliquot on foreign shipments for investment purposes remained at 1.1%.
All other measures, however, were maintained. The expected collection of 2025 with the changes fell to $ 18 billion.
The dissatisfaction of the private sector reached the ears of Congress, and parliamentarians began to articulate the overthrow of the decree through a project of Legislative Decree (PDL).
The president of the House of Representatives, Hugo Motta, even gave a period of ten days for the government to present an alternative collection to the decree, threatening its overthrow.
After a series of meetings, on the night of a Sunday, Finance Minister Fernando Haddad announced that the decree would be reprinted, with retreats at various points, such as:
- Reduction in IOF increase on credit to business;
- 80% cut in the rate applied to drawee risk operations (one of the most controversial points of the decree);
- Reduction of IOF on life insurance with survival prize (such as the VGBL).
With the new edition, the government expected to raise $ 12 billion in 2025.
To compensate for the loss of revenues in relation to the previous decree, o.
Among them, the Government proposed to Congress to expand the taxation on the BETS (sports betting houses) and end the income tax exemption on investment securities such as Real Estate Credit (LCIs) and Agribusiness (LCAS) letters.
The MP, which is effective of 60 days, still needs to be approved by Congress.
In the case of BETS, the proposal raises the taxation from 12% to 18% over GGR (Gross Gaming Revenue), which is the gross revenue of bets – that is, the total collected minus the amount paid in prizes.
The government also proposed changes in social contribution on net income (CSLL) to financial institutions. The reduced rate of 9%, which benefited fintechs, will be extinguished. Now they will be taxed at 15%.
The MP also provides for increased income tax withdrawn at source on interest on equity (JCP) distributed to shareholders. The rate will go from 15% to 20%, but the change will only be valid from January 1, 2026, if approved by Congress.
Investment securities previously exempt from IR, such as the LCIs, they will be taxed with a 5%rate. The new rule also includes encouraged debentures, but will only be valid for new applications – titles already issued remain exempt.
In other financial applications, such as fixed and variable income (including shares), the standard rate will be 17.5%. Currently, it ranges from 15% to 22.5%, depending on the term and type of application.
Income obtained by December 31, 2025 will continue to be taxed by the old rules.
After all, what taxation of IOF is worth?
- With the overthrow of the original IOF decree, the rates return to what they were before. See what changes:
- Credit, debit and international prepaid cards: rate returns to 3.38% (the government had proposed 3.5%).
- Remittances abroad and purchase of currency in kind: rate is once again 1.1% (before it would be 3.5%).
- VGBL contributions: 5% IOF for values over R $ 50 thousand has been revoked. Now all the contributions have IOF zeroed again.
- Credit for companies in general: returns to 0.38% fixed + 0.0041% per day (1.88% per year) instead of 0.95% + 0.0082% (3.95% per year).
- Non -specified operations: Input rate follows at 0.38%, and the exit, which would rise to 3.5%, also back to 0.38%.
