On 2 May 2016, Brazil's Ministry of Finance issued Decree No. 8,731, which increases the financial transactions tax (IOF) on purchases of foreign currencies from 0.38% to 1.10%. The decree also includes that the redemption, assignment, or renegotiation of repurchase agreements between financial institutions and their affiliates in the same group will be subject to an IOF rate of 1.0% per day instead of zero-rated.
The changes are effective from 3 May 2016. IOF rates for other transactions re…