ANNOUNCED AS TEMPORARYNo
FDI: Treatment and operations, nes
On 1 April 2013, the government adopted Decree 7.975 reducing the Tax on Financial Operations (IOF) on local financing projects to 0%. According to KPMG, the measure affects the following types of investments:
Before the enactment of the Decree, only the funding by the Brazilian Development Bank (BNDES) was exempted from the IOF tax. Private borrowers had to pay an IOF tax of 1.5% per annum, plus 0.38% at the time of the contracting of the loan (see Mondaq).
The measure took effect on 2 April 2013.
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