IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 Nov 2011 | Removal date: 18 Dec 2013
Still in force

Controls on commercial transactions and investment instruments

On 19 November 2011, the Brazilian Ministry of Finance raised afinancial operations tax, also known as the IOF, of 1.5% on the issuanceof overseas depositary receipts (DR) linked to Brazilian companies. A depositary receipt is a financial instrument that may be used in anycountry to represent a foreign company's publicly traded stock. The measure, Decree no. 7.011, came into effect on 19 November 2011.
 
On 24 December 2013, the Brazilian Ministry of Finance reduced the financial operations tax, also known as the IOF, on the issuance of depositary receipts (DR) abroad from 1.5% to 0%.
 
Initially, in 2009, the Brazilian Ministry of Finance introduced the tax to lowerthe appeal of foreign funding and encourage additional listings on theBrazilian stock exchanges. The new tax reduction will facilitateBrazilian companies to seek external finance abroad. 
 
The measure,Decreto no. 8.165, came into power on 24 December 2013.

AFFECTED COUNTRIES

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