iOF Increase

05/27/25 @alan279. This was the notice that Wise sent me on May 23 about the announced increases.  They apply to conversions and transfers from BRL, not the other way around.  The government seems to be backing down from them this week in the face of opposition:

You’ll now be charged a 3.5% IOF rate when you convert from BRL.

On 22 May 2025, the Brazilian government announced an increase in the IOF rate. This means that you’ll now be charged 3.5% every time you convert BRL to another currency. Previously, it was 1.1% when you sent money to yourself or 0.38% when you sent it to someone else.

The updated rate is already in place, and will apply to all conversions from BRL. This includes when you:

• convert from your BRL balance

• add a currency other than BRL to your Wise account but pay in BRL

• send a BRL transfer to another currency

The IOF will remain up to 0.38% when you:

• convert another balance in your Wise account to BRL

• send money from abroad to an account in BRL

No IOF rate is charged when you transfer money between BRL accounts.

The IOF is a government defined tax and is not related to Wise’s fees. As we’re regulated by the Central Bank of Brazil, we’ve updated our services to align with this. This means that although our operational fees will remain the same, when you convert BRL, the amount converted will be impacted by the increased IOF rate.

Read the official announcement of the IOF rate.

@abthree

Thanks, I received a similar notice from Nu today.

05/27/25 @alan279. This was the notice that Wise sent me on May 23 about the announced increases. They apply to conversions and transfers from BRL, not the other way around. The government seems to be backing down from them this week in the face of opposition:
- @abthree

Do you think they may reverse this increase?

Jovan Pan News (and other sources) report via X:

”Since the announcement of the increase in the Tax on Financial Transactions (IOF) on credit transactions, made by the economic team of the Lula government, the National Congress has already received 20 proposals with the aim of suspending the measure.”

Here is another report stated:

”Lula's government backtracked on IOF increase after strong market pressure and opposition criticism

In less than 6 hours, the decree was partially revoked.”

Here’s a link to a TV report on this subject:

https://x.com/jovempannews/status/19273 … wbNTQq8gww

@Peter Itamaraca

Seems as crazy as Trump's executive orders. Is dementia contagious?

Or is this the new facism?

@alan279

If they can’t get citizens to pay income taxes (the underground cash only society) then they have to extort it from other sources 😂. TGOM

@alan279

Sorry to jump in on a related topic, but I have always wondered. My 98-year-old Brazilian 2nd. mother often switches between English and Brazilian Portuguese for no reason when talking to me (I prefer English). I always wondered if this was potential Dementia or if I was just constantly getting the best of both worlds.

Roddie in Retirement😎