Brasília – Brazil’s Federal Revenue will no longer levy the Tax on Financial Operations (IOF) on money exchange operations relating to the entry of export revenues into the country, contrary to a decision that had been made last year. Clarifications on the matter are in this Wednesday (24)’s Federal Gazette.
According to the National Confederation of Industry (CNI), as of the end of last year, the Federal Revenue had begun collecting 0.38% on export revenues entering the country. At that point, the Revenue had ruled that only those repatriating the funds on the date of sale would be exempt.
According to the CNI’s Export Competitiveness Forum, companies are unable to exchange the currency on the date of sale. “Exporting companies became very preoccupied. Some 90% of these funds are repatriated, but not on the same date, due to time zone issues, to cash buffers needed in order to pay suppliers, and other reasons,” CNI Trade Policy manager Constanza Negri said.
Translated by Gabriel Pomerancblum
