Brazil Raises IOF Tax: Businesses Feel the Pinch, Individuals Unaffected

Brazil's IOF Tax Increase: What You Need to Know Brazil's government recently announced a significant increase in the IOF (Imposto sobre Operações Financeiras) tax, impacting several financial transactions. The changes, which took effect on May 23rd, 2025, aim to boost government revenue by R$20.5 billion this year and R$41 billion in 2026. One key change affects businesses, with increased IOF rates on credit operations. "The new rates significantly increase the cost of credit for companies," explains financial analyst Maria Silva. However, individual borrowers will see no change, as IOF remains zero for personal loans and financing. International transactions are also affected. The IOF on international credit and debit card purchases and cash foreign currency purchases has increased to 3.5%. This is expected to make international purchases more expensive for Brazilians. While many transactions are impacted, several remain exempt, including imports, exports, and transactions involving public entities. This measure is part of the government's broader fiscal adjustment strategy. The government hopes these changes will help to stabilize the economy and achieve its fiscal targets. The full details of the IOF changes are available in the g1 economy section.