IOF increase on FX: what Decree 12,466 changes for importers and remittances abroad
The government raised the IOF on foreign exchange, credit and insurance on May 22 and backtracked on two points the next day. For anyone paying a foreign supplier, the general remittance rate went from 0.38% to 3.5%.
Historical reference: May 27, 2025. Published on this site on November 2, 2026. Dates in the text identify the period covered.
In this article
Key points
- Decree 12,466, of May 22, 2025, raised the IOF on foreign exchange, credit and insurance. Most of the rules applied from May 23.
- Remittances abroad with no specific rule went from 0.38% to 3.5%. According to law firms, import payments fall into this group. Buying cash in foreign currency rose from 1.1% to 3.5%.
- On the night of May 22, the government backtracked on two points: it kept the zero rate for investment funds abroad and 1.1% for remittances made for investment. Decree 12,467, published on the morning of May 23, formalized the adjustment.
- As of this writing, 18 bills in Congress seek to overturn the decrees. None of this is settled. Importers should confirm the rate for their operation with their bank or FX broker.
Brasília, May 27, 2025 — Five days after the federal government raised the Tax on Financial Operations (IOF), the rule is still not settled. Decree 12,466, of May 22, increased the tax rates on foreign exchange, credit and insurance. The next morning, a second decree undid two points that the financial market had criticized. In the Chamber of Deputies, 18 legislative decree bills already seek to overturn both rules. For anyone paying a foreign supplier, it is worth understanding what is in force today and what may still change.
- general IOF rule for remittances abroad, according to Demarest
- 0.38% → 3.5%
- card purchases abroad and cash withdrawals abroad
- 3.38% → 3.5%
- legislative decree bills filed in the Chamber by May 27 to overturn the decrees
- 18
What happened on May 22 and 23
- May 22 (Thursday)The government announces and publishes Decree 12,466, which raises the IOF on foreign exchange, corporate credit and insurance.
- May 22 (night)After a negative market reaction, the Finance Ministry announces that it will keep the zero rate for Brazilian investment funds abroad and the 1.1% rate for remittances made for investment.
- May 23 (Friday)Decree 12,467 comes out in the morning in an extra edition of the Official Gazette. Most of the rules of Decree 12,466 apply from that day. The risco sacado rules apply from June 1.
- May 27Deputies file 18 bills to override the decrees. There is no vote yet.
The IOF is a regulatory tax, so it can be changed by decree and applies right away, without the wait until the following year required for other taxes. The Finance Ministry estimated that the rollback on funds abroad reduces revenue by less than R$2 billion in 2025. The government expects to collect about R$20 billion in 2025 and R$41 billion in 2026 from the package as a whole, a figure cited by Agência Câmara.
The new foreign exchange rates
| Operation | Before | After |
|---|---|---|
| Unspecified remittances abroad (according to law firms, includes import payments) | 0.38% | 3.5% |
| Card purchases abroad, cash withdrawals abroad, traveler's checks and international prepaid cards | 3.38% | 3.5% |
| Purchase of foreign currency in cash | 1.1% | 3.5% |
| Foreign loan with an average term of up to 364 days (inflow) | 0% | 3.5% |
| Transfer to one's own funds abroad, except investment | 1.1% | 3.5% |
| Remittance abroad for investment purposes | 0.38% or 1.1%, depending on classification | 1.1% (Decree 12,467) |
| Investments by Brazilian investment funds abroad | 0% | 0% (kept by Decree 12,467) |
| Unspecified inflows of funds | 0.38% | 0.38% |
The decrees also revoked art. 15-C of Decree 6,306/2007, the schedule that would gradually reduce the IOF on foreign exchange to zero in 2029, a commitment Brazil made in its OECD accession process. On remittances for investment purposes, the sources disagree about the previous rate: the Finance Ministry says the 1.1% was kept unchanged, and Demarest places it, before May, under the general rule of 0.38%.
What changes for those who import
Decree 12,466 did not create a rate of its own for import payments. For that reason, the legal analyses published so far place it among the unspecified remittances, which now pay 3.5% instead of 0.38%. That is an additional cost of about 3.1 percentage points on the amount remitted. The calculation follows what importers have already weighed when comparing payment methods, as in the analysis of SWIFT or USDT, and it adds to a year in which the dollar and US tariffs already weigh on costs, as the text on the US tariff hike shows.
Each foreign exchange operation has its own classification. The reading that import payments fall under unspecified remittances, at 3.5%, comes from law firms, and Brazil's Federal Revenue Service (Receita Federal) may still detail specific cases. Before closing a shipment, ask your bank or FX broker for the IOF applied and confirm with your accountant.
Credit and risco sacado
The decree also changed the IOF on credit, which affects working capital and import financing. For companies, the daily rate rose from 0.0041% to 0.0082% and the fixed rate from 0.38% to 0.95%, which raises the maximum annual rate from 1.88% to 3.95%. For companies in the Simples Nacional (the simplified tax regime for small businesses) in operations of up to R$30,000, the cap went from 0.88% to 1.95%.
Another novelty is risco sacado (reverse factoring), the financing in which a bank advances to the supplier the amount of a purchase on credit. The operation is now treated as credit and subject to the IOF from June 1. Law firms point out that the issue is likely to generate legal debate.
What is still under discussion
- Congress: deputies filed 18 legislative decree bills (PDLs) to override Decrees 12,466 and 12,467, arguing that higher revenue should come through legislation. Processing in the Senate and a vote have not yet happened.
- Regulation: the Receita Federal may regulate remittances for investment, kept at 1.1%.
- Litigation: experts point out that risco sacado may be challenged, since the tax now applies by decree to an operation not previously covered.
- New changes: the law firm Demarest notes that further changes may be published.
Until something changes, the rule in force is the one in the decrees. Anyone with scheduled payments should keep in mind that the rate may go up or down in the coming weeks, and that IOF paid today is not automatically refunded if the rule is overturned.
Frequently asked questions
What is the IOF on foreign exchange for paying a foreign supplier?
Under Decree 12,466, of May 22, 2025, remittances abroad with no specific rule went from 0.38% to 3.5%. Law firms such as Demarest include import payments there, since they have no rate of their own. The exact classification depends on the operation, so confirm with your bank or FX broker.
Did the government backtrack on the IOF increase?
Partially. On the night of May 22, the Finance Ministry announced the rollback, and Decree 12,467, published on the morning of May 23, kept the zero rate for Brazilian investment funds abroad and the 1.1% rate for remittances made for investment. The other increases, including the one for remittances in general, remain in force.
Since when do the new rates apply?
The IOF does not have to wait for the following year, and most of the changes began to apply on May 23, 2025. The rules on risco sacado and the credit IOF for that type of operation apply from June 1.
Can Congress overturn the increase?
Yes. As of this writing, deputies have filed 18 legislative decree bills to override the decrees. To take effect, they must be approved by the Chamber and the Senate. There is no vote date.
Found it useful? Share it with anyone who pays suppliers abroad.
Sources
- Fazenda ajusta medida sobre IOF e reforça compromisso com equilíbrio fiscal · Ministério da Fazenda, May 23, 2025
- Majoração do IOF: Governo Federal aumenta IOF para operações de câmbio, crédito e VGBL · Demarest Advogados, May 23, 2025
- Veja as alterações no IOF: Decretos nº 12.466/2025 e 12.467/2025 · Cescon Barrieu, May 26, 2025
- Deputados apresentam 18 projetos para derrubar aumento do IOF · Agência Câmara de Notícias, May 27, 2025
- Haddad diz que recuo no IOF buscou evitar leitura de freio a investimentos · InfoMoney, May 23, 2025
For information only, not investment advice. Third-party brands mentioned belong to their owners; the mention is journalistic and does not indicate a partnership or relationship with Swapo Finance.
International payments with the speed of Pix and Central Bank rules.
Convert reais into USDT and send it to your supplier on the TRON network. One fee shown upfront, asset segregation policy, human support. Virtual assets have no FGC coverage; authorization application filed with the BCB.
