The decree increases the financial transactions tax on domestic loans.
On 16 September 2021, the Brazilian Government published Decree 10,797/21, increasing the financial transactions tax (Imposto sobre Operações de Crédito, Câmbio e Seguro, ou relativas a Títulos ou Valores Mobiliários or IOF) on domestic loans from 20 September 2021 to 31 December 2021.
The new IOF credit rates for entities apply to domestic loans with pre-determined principal amounts at a maximum rate of 2.42% per year (0.38% u…