Brazil Tax Update: Minimum Average Term Further Reduced for Certain Financial Transactions

Brazil makes further amendment to the provisions governing tax on financial operations (Imposto sobre OperaÃ§Ãµes Financeiras - IOF) with the publication of Decree No. 7,853 which reduces the minimum average term for certain financial transactions

(prHWY.com) January 8, 2013 - Sunnyvale, CA -- Direct loan and bond issuance transactions in the international market will be charged IOF at six percent if such transactions - are contracted from December 5, 2012 and have a minimum average term of up to 360 days. The revised average term will also apply to transactions carried out via simultaneous foreign exchange transactions.

Earlier, all transactions with a minimum average term of up to 720 days were charged IOF at six percent. For settlement of these loan transactions, however, the zero IOF rate will remain the same.

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