Decree 8,175/2013, published in the Official Gazette of 28 December 2013 and effective from this date, provided that the rate of tax on financial transactions (imposto sobre operações financeiras – IOF) levied on foreign exchange transactions by debit or credit card administrators to cover cash withdrawals carried out by their clients in a foreign country was increased to 6.38% (previously 0.38%).
The same 6.38% rate will also be levied on exchange transactions in the acquisition of currency in the form of traveler’s checks, and on loading prepaid international credit cards.
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