Brazil's Finance Ministry Reverses IOF Tax Hike on Forex

Brazil's Finance Ministry has announced a strategic rollback on the recent increase of the IOF tax applied to foreign exchange transactions.

Under this decision, investments made abroad by local investment funds will revert to a zero tax rate, contrasting with a previous hike that raised it to 3.5%.

Despite this adjustment, individual overseas remittances for investment will maintain a 1.1% tax rate, a balanced move according to the ministry's stance on previous decrees.

(With inputs from agencies.)