Decree No. 8,263/2014: Decrease of the Minimum Average Term of Foreign Loans
June 4, 2014
Today (June 4th, 2014) was published on the Brazilian Federal Official Gazette, the Decree No. 8,263, of June 3rd, 2014 (“Decree No. 8,263/2014”) amending Article 15-A, item XXII, of Decree No. 6,306 of December 14, 2007, which regulates the Tax on Credit, Foreign Exchange (“FX”), Insurance or Bonds’ and Securities’ Transactions (“IOF”) (“Decree No. 6,306/2007” or “IOF Regulation”).
Said Decree No. 8,263/2014 decreased the minimum average term from up to 360 (three hundred and sixty) days to up to 180 (one hundred and eighty) days, applicable to the inflow of funds into Brazil carried out by means of FX transactions – including through simultaneous FX transactions – contracted as of June 4th, 2014, regarding foreign loans subject to registration before the Brazilian Central Bank, contracted either directly or by means of the issuance of securities within the international market, which are subject to IOF/FX at a 6% rate, applicable when the minimum average term is not observed.
The change brought by the Decree No. 8,263/2014 has entered into force on the date of its publication (i.e., June 4, 2014).
THIS IS MERELY AN INFORMATIVE NEWSLETTER, RESTRICTED TO VELLOZA & GIROTTO CLIENTS. QUESTIONS AND CLARIFICATIONS ON THE MATTERS CONTAINED HEREIN SHOULD BE ADDRESSED TO OUR OFFICE.
