Decree nr. 8.023, published in the Federal Official Gazette on June 5, 2013, presented alterations to the Regulations of the IOF ("Tax on Credit, Foreign Exchange and Insurance Transactions") ("Decree 6.306/07") relating to the rules applicable to the IOF/Exchange Rate. These alterations entered into force as of the date of publication of the mentioned decree.

The changes to the IOF/Exchange Rate concern its application in foreign currency exchange transactions agreed upon for inflow of funds destined for investments in the financial and capital markets.

The rate applicable on exchange operations for the entry of resources to be invested in the fixed-yield market was reduced from 6% to 0%. The decree also made the same reduction on the rate applicable on exchange operations destined to create the guarantee margin required by the commodities and futures exchanges. It should be noted that, generally, exchange operations performed with the intention of bringing funds into the country to be used for variable income investments in the stock exchange or in the futures and commodities exchange, as regulated by the National Monetary Council (CMN), except for operations with derivatives that result in pre-established income, already benefit from the IOF/Exchange Rate 0% tax rate.

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