On 4 June 2014, Brazil reduced the application of the financial transaction tax (IOF) on cross border loans that bring money into the country. Previously such loans were subject to the 6% IOF when the average payment period was 360 days or less. From 4 June 2014, the average payment period threshold is reduced to 180 days or less. Loans with average payment periods exceeding 180 days are effectively zero-rated.
The IOF rate of 6% applies to direct bank or intercompany loans, bonds issued in …