What is IOF?
IOF (Imposto sobre Operações Financeiras) is a federal tax that applies to various financial operations: loans, exchange, insurance, and even investments redeemed in less than 30 days.
Where IOF appears
Investments (fixed income)
- Applies to income redeemed in less than 30 days
- Starts at 96% on day 1 and goes to 0% on day 30
- After 30 days: exempt from IOF
International credit card
- 4.38% on purchases in foreign currency
- Applies to the total purchase value
Loans and financing
- 0.38% fixed + 0.0082% per day on the value
- Charged at the time of hiring
Exchange (purchase of dollar/euro)
- 1.1% for cash currency purchase
- 0.38% for international transfers
Practical tip
If you invested in CDB or Tesouro Selic, wait at least 30 days to redeem. This way you won’t pay IOF on the income. This is an important rule for emergency reserve.
IOF regression table (investments)
| Days | IOF on income |
|---|---|
| 1 | 96% |
| 5 | 83% |
| 10 | 66% |
| 15 | 50% |
| 20 | 33% |
| 25 | 16% |
| 30+ | 0% |