The Brazilian government has announced a decree that provides tax relief on the IOF (Tax on Financial Operations) for corporate credit operations, private pension plans (VGBL), and risk-backed transactions.
The fixed rate for credit operations has been reduced from 0.95% to 0.38%, and the limit for taxation on pension plans has been expanded. This measure aims to stimulate the productive sector and adjust taxation on funds and foreign exchange operations.
In addition to the IOF changes, the government has proposed significant alterations to the Income Tax on investments, including stocks, Treasury Direct, CDBs, and real estate investment funds. A provisional measure (MP) has been published to implement a broad reform in investment taxation.
The reform unifies Income Tax (IR) rates at 17.5% for fixed and variable income investments and eliminates the exemption for titles such as LCI, LCA, CRI, and CRA, as well as dividends distributed by FIIs and Fiagros, which will be subject to 5% IR. These changes are scheduled to take effect from 2026, unless rejected by Congress or if they "expire" within 120 days.