On July 16, 2025, the Federal Supreme Court (STF) granted a preliminary injunction reinstating the effects of Decree No. 12,499/2025, which had previously been partially suspended by a decision of Justice Luiz Fux. The aforementioned decree increased several IOF (Tax on Financial Transactions) rates, directly affecting credit, foreign exchange, insurance, and investment operations.
The constitutionality of Decree No. 12,499/2025 was upheld, based on the regulatory nature of the IOF, whose rates may be modified by Executive action, in accordance with Article 153, §1 of the Brazilian Federal Constitution.
However, the decision maintained the suspension of the IOF’s application to “risco sacado” (assigned receivables with recourse) transactions, on the grounds that such transactions do not qualify as credit operations and, therefore, cannot be taxed via decree.
As a result of the ruling, the new rates established by the decree are reinstated, including:
| Transaction Type | Previous Rate | New Rate |
|---|---|---|
| International credit card transactions | 3.38% | 3.50% |
| Purchase of foreign currency in cash | 1.10% | 3.50% |
| Overseas remittances (travel) | 1.10% | 3.50% |
| Overseas remittances (investments) | 0.38% | 1.10% |
| VGBL investments (from 2026 onwards) | Exempt | 5% on the amount exceeding BRL 600,000 |
| FIDC (primary tranche acquisitions) | Exempt | 0.38% |
The decision applies retroactively to the date of the decree’s publication (June 11, 2025), which may have significant implications for transactions carried out during the suspension period.
Practical Implications:
- Taxpayers who refrained from collecting the IOF based on the previous suspension should assess potential retroactive tax liabilities;
- “Risco sacado” transactions remain excluded from the IOF’s scope, with support from the STF’s decision;
- The preliminary injunction is still subject to review by the Court’s Full Bench, which may confirm or alter the current understanding;
- The matter is likely to be subject to further litigation, particularly regarding the retroactive application of the tax and the legality of its increase by decree.
Our firm remains available to assess the specific impacts of this measure on your operations and to advise on appropriate next steps.