Public Government MP with measures to compensate for IOF; See details

The federal government published on Wednesday (11) a new package of tax measures to replace the controversial increase in IOF (Tax on Financial Operations), decreed in May and widely criticized by parliamentarians and the market.

Among the main points of the new tax package, presented in provisional measure and presidential decree, is the reduction of up to 80% of the IOF tax rate on drawee risk operations, used by companies to anticipate receivables. Taxation on VGBL insurance was also reduced.

To compensate for the loss of collection caused by these reductions, the government will adopt a series of new tax measures:

• LCIS ​​AND LCAS are no longer exempt: A 5% income tax rate will be created on income from now -exempt real estate and agribusiness letters of credit and agribusiness.
• Financial investments will have a single rate: IR on investments becomes 17.5%, regardless of the application term. Currently, the rate ranges from 15% to 22.5%.
• Sports bets will pay more tax: The rate rises from 12% to 18% of net revenue.
• Cryptors are taxed: MP includes rules for regulating and taxing digital currencies.
• Fintechs lose reduced rate: CSLL (social contribution on net income) of financial institutions will be uniform between 15% and 20%, ending a special rate of 9% for fintechs.

The decision was the result of a political articulation to circumvent the wear and tear generated by the previous decree, which had raised the IOF in various financial operations.

After a strong congressional reaction, which presented more than 20 projects to overthrow the measure, the government partially retreated and pledged to present an alternative.

The new proposal was designed after a meeting of Finance Minister Fernando Haddad, with party leaders at the mayor’s house, Hugo Motta (Republicans-PB).

The measures are part of the government’s effort to ensure fiscal sustainability and expand the collection in the face of increased expenses contracted to 2025, such as Fundeb’s transfers.

Finance Minister Fernando Haddad had already stated that the goal is to adjust the public accounts without penalizing taxpayers with lower income. “We are provoking the resident of the coverage to pay a part of the condominium,” the minister said at the House hearing on Wednesday.

(Update matter)