Brazil changes IOF tax rules on cross-border loans again

On March 12, 2012, the Brazilian government changed the Tax on Financial Operations (IOF) rules on foreign currency exchange transactions for loan principal remittances to Brazil by increasing the minimum average payment term fromthree years (rule was in effect from March 1, 2012 to March 11, 2012) to 1,800 days. On June 14, Brazil changed the rules again to reduce the minimum average payment term for loans subject to the IOF tax.