Brazil: Zero IOF on foreign exchange inflows for fixed income securities


the Brazilian Government published, on 5 June 2013, Decree 8.023/13, which reduces the IOF (Imposto Sobre Operações Financeiras - Financial Operation Tax) on foreign exchange inflows for fixed income securities (government and corporate bonds) from 6% to 0%.

As a consequence, all foreign exchanges booked from 5 June 2013 onwards for purchases of fixed income securities in the Brazilian market are subject to 0% IOF.

Customers are reminded that there is no IOF on foreign exchange inflows for variable securities, such as equities. Please refer to our Announcement A12092, dated 4 May 2012.

No tax will be applicable where funds from investments in fixed income securities are used to purchase equities, and vice versa.

Further information

Details of the Brazilian market are presented in the Creation Link Guide (Brazil).

For further information, customers may contact Clearstream Banking1 Customer Service or their Relationship Officer.

1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).

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