Brazil has published Private Ruling No. 231 of 15 July 2019 in the Official Gazette, which clarifies the application of the tax on financial transactions (IOF) in relation to exports.
The Ruling includes that IOF is not levied on the maintenance of foreign currency resources in a foreign institution in relation to the export of Brazilian goods and services by individuals or companies. In such cases, there is no settlement of a foreign exchange contract and, therefore, there is no taxable ev…