New IOF Rules in Brazil: Decree No. 12,466/2025 Brings Key Updates on Credit and Foreign Exchange Operations
- Daniela Lavin
- May 23
- 1 min read
Today, the Brazilian government published Decree No. 12,466/2025, which updates the regulation of the Tax on Financial Transactions (IOF). The changes impact credit, foreign exchange, and insurance operations and introduce important updates for cooperatives, financial institutions, and cross-border payment systems.
Main Highlights
New transactions subject to IOF - Advance payments to suppliers (“forfait” or “supplier risk”) are now considered credit operations and subject to IOF. The financial institution responsible for the advance is responsible for calculating and collecting the tax.
Updated IOF rates for legal entities: The daily rate of 0.0082% is maintained. An additional flat rate of 0.95% now applies to all credit transactions, regardless of term.
Special regime for Simples Nacional taxpayers: Operations up to R$30,000 will be subject to a reduced daily rate of 0.00274%.
New 3.5% IOF rate for various foreign exchange transactions, including:
Payments for goods and services made by users of cross-border payment systems;
ATM withdrawals abroad;
Prepaid international card reloads;
Personal remittances abroad;
Purchase of foreign currency in cash.
Life insurance with survival coverage:
A 5% IOF rate will apply to total monthly contributions exceeding R$50,000, including contributions across multiple insurance providers.
Insurers are responsible for recalculating and collecting IOF on the full monthly amount.
Cooperative sector rules: Cooperatives are subject to IOF unless they meet certain credit volume thresholds (under R$100 million annually). The analysis applies to the entire economic group the cooperative is part of.
Effective Dates
Most provisions take effect May 23, 2025.
Rules regarding advance supplier payments will apply starting June 1, 2025.
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