BM&FBOVESPA: Decree N. 8,023 Reduced The Rate Of Tax On Credit, Exchange And Insurance On Foreign Investors’ FX Transactions

Date 10/06/2013

BM&FBOVESPA informs that on June 4 Decree N. 8,023 reduced the rate of Tax on Credit, Exchange and Insurance (IOF) on foreign investors’ FX transactions (including simultaneous transactions) from 6% to zero, for:

Initial or additional margin deposits required by stock and futures exchanges;
Investment in financial and capital markets, including transactions on the fixed income market, creation of BDRs, subscriptions and acquisition of exchange-traded or OTC investment fund shares.

BM&FBOVESPA emphasizes that Decree N. 8,023 does not amend the IOF on transactions involving financial derivatives contracts, for which the rate of 1% on net short positions is still applicable. Neither does it change IOF on ADR creation, which is still subject to a 1.5% rate.