Federal government adjusts IOF by decree and changes financial taxation via MP

Decreto nº 12.499 e MP nº 1.303 ajustam IOF e redefinem tributação financeira, impactando investimentos, incluindo renda fixa, bolsa, fundos, criptoativos e JCP

Recently, the federal government published Decree No. 12.499/2025, changing the collection of IOF, and sent to Congress Provisional Measure No. 1.303/2025, proposing a new tax structure on investments. Both measures are part of a fiscal repositioning that seeks to adjust tax collection in a scenario of greater spending control.

But these changes did not come without context. It is worth remembering that, weeks earlier, the government had created a strong market reaction by proposing to increase the IOF on credit operations. The negative repercussions were intense. Shortly afterwards, it opted to reduce this same IOF and, at the same time, propose more structural changes in the taxation of investments, with the aim of broadening the tax base in the medium and long term.

What is IOF?

The IOF (Tax on Financial Operations) is levied on credit, foreign exchange, insurance and investments. It is a federal tax that can be changed by decree, with immediate effect - in other words, it doesn't need to go through Congress, nor does it need to respect deadlines such as annual or nonagesimal anteriority.

What has changed with Decree 12.499/2025?

-> Credit for companies

The main IOF rate fell from 0.95% to 0.38%. However, the daily rate of 0.0082% on the amount lent remains. This means that the longer the loan term, the higher the total IOF to be paid.

-> Drawn risk (anticipation of receivables)

This modality is common among companies that sell on credit and anticipate the receipt of these amounts based on the credibility of the buyer. It is widely used in retail, industry and logistics, especially by those who sell to large chains.

In the past, this operation had an extra IOF tax. Now, this additional charge has been eliminated - only the daily rate remains, which reduces the cost of the operation.

-> Foreign exchange operations

Zero IOF for foreign funds entering Brazil.

IOF of 3.5% maintained for sending funds abroad.

-> Insurance with survivor coverage (VGBL)

For individuals, there is an exemption of up to R$ 300,000 per insurer, a limit that will be increased to R$ 600,000 in 2026. Amounts above this are subject to a 5% IOF tax.

-> These measures are already in force.

What will change from 2026 onwards? (if Provisional Measure 1.303/2025 is approved)

The Provisional Measure proposes a wide-ranging reform of taxation on investments, with unified rates and new rules for offsetting losses. Check out the highlights:

📈 Fixed income

It will now have a single rate of 17.5%.

Today, the rate varies between 22.5% and 15%, depending on the term of the investment, meaning that long-term investments may be taxed more heavily.

-> Offsetting losses

It will now be possible to offset losses against gains on other financial investments in the tax return, for up to 5 years.

Stock exchange

Profits will now be taxed at 17.5%, with quarterly calculation.

Sales of up to R$60,000 per quarter will be exempt.

Losses can be used to offset future gains.

🪙 Cryptoassets

Will now be taxed at 17.5%.

Losses can only be offset against gains within the cryptoasset universe itself.

🌾 Exempt securities: LCI, CRI, CRA, FIIs, Fiagros

The exemption only applies to investments made until December 2025.

-> Investment funds

Most will have a single tax rate of 17.5%.

FIIs and Fiagros will now be taxed at 5% for individuals.

New rules for companies and foreign investors

- In addition to the changes for individuals, companies will also be impacted:

Investments made by companies will pay a rate of 17.5%, which will be brought forward as part of the taxes they already have to pay (IRPJ and CSLL).

Investment funds will have clearer accounting rules: If the company invests in funds that have real estate or shares, it will be able to separate the part of the profit that has not yet been realized (i.e. that has not yet become real money) and only pay tax on this when the fund sells the asset.

- Hedging abroad (protection against changes in the dollar, interest rates, etc.): If operations are carried out in accordance with market rules and on recognized stock exchanges abroad, losses can be written off, which was not allowed before.

- Tax increase for financial institutions, such as digital banks, stock exchanges and fintechs: CSLL (a specific tax on profit) rises from 9% to 15%.

- Interest on Equity (JCP), a common form of profit distribution to shareholders, will pay 20% tax (previously 15%).

- Sports betting (BETs): the tax has increased and now part of the proceeds will go to health.

• Most of these rules come into force in January 2026, if the Provisional Measure is approved by Congress.

  
  

• Some exceptions (such as the new CSLL rate for payment institutions and the destination of betting revenues) come into force in October 2025, due to nonagesimal anteriority.

  
  

  The changes announced by the government, both in the IOF and in the way investments are taxed, are part of a larger movement to restructure the Brazilian tax system. The declared intention is to make taxation simpler, more predictable and more modern. However, they also reflect a real concern to ensure future revenue, given the loss of revenue with the end of the IOF on foreign exchange (scheduled for 2029).