Câmara decides future of the IOF decree on Wednesday: Understand what is at stake

The House of Representatives votes on Wednesday (25) the Legislative Decree (PLD) bill that may revoke the last government decree that changed the Financial Operations Tax (IOF). The measure, published on June 11, was the Lula’s third attempt to readjust the tribute in less than a month after strong criticism of economic and Congress sectors.

If approved, the proposal overturns the rules that have been in force since the publication of the decree, directly impacting credit, exchange, private pension and anticipation of suppliers (draweed risk) operations.

Since the first decree, published On May 22the government has retreated twice. The initial text raised the IOF for credit operations between companies, exchange and contributions in private pension plans. On the same daythe government has given up taxation on shipments to Brazilian funds abroad. On June 11a new version recalibrated part of the increases, with a complementary provisional measure (MP) to compensate for revenue losses with new highs on other fronts, such as investment income tax.

What is the chance of sustaining the decree?

Finance Minister Fernando Haddad said on Tuesday (24) that he believes in the interlocution with Congress, but the fact is that the mayor, Hugo Motta (Republicans-PB), announced in an X publication that would guide the vote on IOF an hour after Haddad’s interview was aired on TV Record.

The vote on the urgency of the proposal has already been approved in the House, which allows the merit to be analyzed directly in the plenary. According to Motta, the “climate in the House is not favorable for the increase of taxes with the purpose of the purpose.”

Nevertheless, the history shows that PLDS approval is rare: since 1989, only 22 of the 2,647 such projects have been approved, less than 1% of the total.

What is worth today – and it can fall

The changes in the decree of June 11 are in force, but can be overturned if PLD is approved. See the main points:

CREDIT FOR COMPANIES:

• Before: Fixed rate of 0.38% + daily of 0.0041% (up to 1.88% per year)
• Now: Fixed rate of 0.38% + daily of 0.0082% (up to 3.38% per year)

Credit for Simples Nacional companies (up to R $ 30 thousand):

• Before: up to 0.88% per year
• Now: up to 1.38% per year

DREATED RISK (anticipation of suppliers):

• Before: without taxation
• Now: daily rate of 0.0082%; fixed rate of 0.95% was removed

International cards and personal exchange:

• Before: 3.38% with progressive reduction by 2029
• Now: Frozen in 3.5%

Purchase of currency in kind and personal shipments:

• Before: 1.1%
• Now: 3.5%

Shipping for investments abroad by PF:

• Continues at 1.1%, after retreat

Private Pension (VGBL):

• Before: Exempt
• Now:
  • 2025: exemption up to R $ 300 thousand per CPF (per insurer); 5% over surplus
  • 2026: exemption up to R $ 600 thousand per CPF; 5% over surplus

What is no longer in the proposal

The government has already revoked the proposal to apply IOF of 3.5% on transfers to Brazilian funds abroad and on foreign capital return – that remain exempt. The estimated collection with the current decree is R $ 10 billion, below R $ 19.1 billion originally.

What happens if the decree falls?

If the June 11 decree is overthrown, the government loses the latest adjustment and returns to the previous version – that is, the first increase in the proposed IOF in May. However, Congress could also advance with a new discussion to define what, in fact, will be in force.

In addition, the provisional measure that changed the taxation of income tax on investments, sent to the IOF decree, may have its processing impacted by the political environment.