Brazil Temporarily Increases Financial Transactions Tax Rates to Fund Welfare Program for COVID-19

The Brazilian government has announced that President Jair Bolsonaro issued Decree No. 10,797 on 16 September 2021, which provides for a temporary increase in the financial transactions tax (IOF) rate to fund the expansion of the Auxílio Brasil welfare program. The program provides aid for Brazilians impacted by the COVID-19 pandemic. With effect from 20 September to 31 December 2021, the decree increases the IOF daily rates on credit transactions from 0.0041% to 0.00559% for legal entities…