As from today, any international loan to Brazilian companies or individuals is subject to 6% IOF Tax.
Only loans with a maturity date
longer than 5 years 2 years 1 year are exempt from the taxation (there have been several changes within 2012. Currently, the minimum is 1 year).
The Brazilian government is trying, by all means, to reduce the influx of US Dollars to Brazil.
Those are mad times we live in.
Alternatives:
- Use loans with a maturity date that is effectively longer than 5, 2 1 year (mentioning 1 year but obtaining payment in less than that time will not be enough).
- Invest instead of lending.
See you soon.
