Important IOF updates

Important Update on the IOF

On Wednesday (July 16), Minister Alexandre de Moraes of the Brazilian Federal Supreme Court (STF) reinstated Decree No. 12,499/25, which increased several rates of the Tax on Financial Transactions (IOF). However, the decision did not uphold the IOF levy on so-called “risco sacado” transactions — a type of operation in which companies anticipate receivables through financial institutions.

The decision follows a sequence of executive and legislative decrees, a preliminary injunction at the STF, and a conciliation hearing.

➡️ The IOF levy with the new rates will apply retroactively to the date of publication of the Executive’s decree (June 11, 2025).

The ruling was issued after a failed attempt at conciliation between the parties and will still be subject to the STF plenary’s confirmation — with no date scheduled yet.

The Brazilian Federal Revenue Service, in turn, stated that it is still assessing how to handle the situation of affected taxpayers.