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What is IOF?
IOF is a Brazilian financial operations tax charged to individuals or corporation in foreign exchange operations, loans, insurance, among others. The IOF tax rate will depend on the reason for transfer.
Some rates examples *:
Purchase foreign currency in cash: 1.1%
Sale foreign currency in cash: 0.38%
Purchase foreign currency in international prepaid card: 6.38%
How does Income Tax (IR) work in foreign exchange transactions?
Individuals or corporations have to pay Income Tax in some international transfer. The tax charge will depend on the reason for transfer, destination country, entity responsible to collect the tax, according to recipient, among others.
In some exchange transactions with foreign exchange, income tax may be charged depending on the reason for transfer.
How to calculate Income Tax (IR)? And what is the rate?
The rate range from 6% to 25%*, depending on the destination country.
*Rates may change. To know the tax rate for your transaction, consult a moneycorp specialist when you are booking a deal.
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