In October 2009, the government of Brazil announced a rule change for commercial cross-border financial flows.



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Decree no. 6,983, published in Official Gazette on the 20th October 2009,
Decree no. 7,323, published in Official Gazette on the 5th October 2010,
Decree no. 7,330, published in Official Gazette on the 19th October 2010,
Decree no. 8,023, published in Official Gazette on the 5h June 2013,

Inception date: 20 Oct 2009 | Removal date: 19 May 2013

Controls on commercial transactions and investment instruments

On 19th October 2009, Brazil imposed a 2% financial transactions tax (IOF) on foreign capital entering the country for investment in equities and fixed-income instruments (Decree n° 6,983, published on 20th October 2009).

Later on 5th October 2010 Brazil increased the tax applied on foreign capital inflows for investment in fixed income instruments to 4% (Decree no.7,323, of 4th October 2010).
On 18th October 2010 a new increase of the tax , from 4% to 6%, was established to the foreign capital inflows related to operations for investment contracted after 19th October 2010, covering investments only in fixed income instruments. It was also established an increase from a tax of 0.38% to 6% on guarantees required by derivative operations.
It is important to note that these measures do not affect foreign direct investment entering Brazil.
According to a statement by Brazil's Finance Minister, the measure is destined to curb further speculative inflows of capital and deter the appreciation of the Brazilian currency. ("O Estado de S. Paulo", 19th October 2009 and "O Globo", 19th October 2010)
On 4th June 2013, Brazil decided to reduce the 6% tax for foreign investment on fixed income products to 0% (Decree no. 8,023, of 4th June 2013). The measure aims at avoiding a further depreciation of the Brazilian Real since the US Federal Reserve signaled to reduce buying bonds. ("O Estado de S. Paulo", 5h June 2013)