Brazil mulls IOF on LCI/LCA after Congress rejected income tax on investments

The Brazilian government is considering imposing the IOF (tax on financial operations) on LCI, LCA and other investment titles, potentially via decree, after Congress rejected a 2025 proposal to tax these investments with income tax. The move would mark a policy shift, using a decree to bypass legislative approval, and could affect the attractiveness of these popular tax-exempt instruments. Uncertainty remains over scope and timing.

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