Today, Decree no. 10,797, issued by the President of the Republic, was published, amending Decree no. 6306/2007, which regulates Tax on Credit, Exchange, and Insurance Transactions or on Securities (“IOF”), for the purpose of increasing the tax rates on credit transactions for individuals and legal entities.
According to article 1 of said rule, which modifies the wording of §22, article 7, of Decree 6306/2007, the IOF rates in credit transactions carried out between September 20 and December 31, 2021 shall have the following effects:
I – legal entity borrower: 0.00559%;
II – individual borrower: 0.01118%;
III – corporate borrower: 0.00559% per day; and
IV – individual borrower: 0.01118% per day.
According to the Presidency of the Republic, the purpose of the increase in the tax burden on loans is to raise extra revenue to fund the new social program of income transfer that will replace the Bolsa Família (Family Grant).
Leite, Tosto e Barros’ Tax team is always available to guide you on the matter..
*This newsletter had the collaboration of partner Sérgio Grama Lima.