Brazil Increases Financial Transactions Tax on Transfers from Brazilian Accounts to Foreign Accounts

Brazil has published Decree No. 9.297 of 1 March 2018 in the Official Gazette. The Decree amends Decree No. 6.306 of 14 December 2007, which regulates the financial transactions tax (IOF), to increase the IOF rate from 0.38% to 1.10% on the transfer of funds from a Brazilian bank account to a foreign bank account held by the same individual or company. The change harmonizes the IOF rate on transfers with the IOF rate on foreign currency purchases, which was increased to 1.10% in May 2016 ({N…