This Friday, April 3, Decree 10,305 / 2020 comes into force, which temporarily reduces the IOF tax rate on financial transactions.
The reduction to zero will be applied between April 3 and July 3, 2020, both for the main rate of 0.38% on credit and for the daily rates calculated at 0.0041% when transactions between legal entities and 0.0082 % when transactions with legal entities and individuals.
The reduction will be applied to the following credit operations:
a) loan operation in any form, including credit opening;
b) discount transactions, including the sale of credit rights factoring companies resulting from credit sales;
c) in advance to the depositor, granted by the bank to cover any outstanding balance in the current account;
d) loans, including in the form of financing, subject to the release of funds in installments;
e) limit of bank accounts overdrafts;
f) in loan operations, discount operations, advance to the depositor, financing, excess limits, when the borrower opts for Simples Nacional (The National simplified taxation system for SMEs);
g) in financing operations for the acquisition of non-residential properties, in which the borrower is an individual;
h) in the extension, renewal, confession of debt and similar business, of a credit operation in which there is no substitution of a debtor;
i) in credit operations not settled at maturity, whose taxation of the main rate has not reached the term of 365 days, subject to extension or renewal.