Brazil Reduces Financial Transaction Tax (IOF) to Nil; Encourages Businesses to Invest in Certain Sectors

The Brazilian Government has reduced the rate of financial transaction tax (Imposto sobre Operações Financeiras - IOF) on certain insurance policies to nil.

Sunnyvale, CA (prHWY.com) September 24, 2012 - (Sunnyvale, CA)- The Brazilian Government has reduced the rate of financial transaction tax (Imposto sobre Operações Financeiras - IOF) on certain insurance policies to nil. The declaration pertaining to tax reduction has been published on August 16, 2012 and takes effect 90 days following its announcement.

Current Brazilian Financial Transaction Tax
The Financial transaction tax is imposed on insurance policies issued to assure certain legal obligations referred to as guarantee insurance (Seguro Garantia). Currently, the financial transaction tax is charged at 7.38%.

Brazilian Financial Transaction Tax Revision: Objective and Implication
With an objective to stimulate investment in logistics and infrastructure sector, the Brazilian Government has decided to bring down the IOF rate to nil. The nil IOF will end certain legal obligations for investment projects like loans for larger constructions.

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Tag Words: brazil financial, transaction tax, current brazilian, financial transaction tax

Categories: Business

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