IOF reduction on credit operations extended for another 90 days
HLB Brazil
The Federal Revenue published last Friday (3), through the Official Gazette, the 90-day extension of the reduction of the IOF tax rate on credit operations through Decree 10.414, of July 2, 2020.
Previously, the measure was scheduled for the period from 4/3/2020 to 7/3/2020, however with the new Decree, the reduction of the IOF tax rate on credit operations will have a longer term, valid until the 2nd of October this year.
Still in the same determination, the reduction for the same period of the IOF rate of 0,38% on these credit operations was established for the same period, having a greater impact on short-term actions in the period when individuals and companies need greater liquidity.
In addition, companies registered in Simples Nacional can also take advantage of the reduction in the IOF proposed by the new Decree.
The Federal Revenue’s expectation are that the tax waiver until October will be in the order of R$ 7.051 billion.
If there are any doubts, our specialists are available to guide you.
