Skip to content
Subscriber Only

Brazil Boosts Tax on Overseas Credit-Card Purchases

Brazil’s government almost tripled a tax consumers must pay on credit-card purchases abroad to 6.38 percent.

The increase in the so-called IOF tax on financial transactions from 2.38 percent is effective today and will affect transactions liquidated after 30 days, according to a decree published in the Official Gazette. The increase also affects Internet commerce, according to Sandro de Vargas Serpa, undersecretary for taxation at Brazil’s tax agency.