Federal Decree 8.392 was enacted on January, 21, 2015, producing legal effects as from January, 22, 2015. Pursuant to Decree 8.392/15, the Brazilian Federal Government increases the rate of the Tax on Financial Transactions (“IOF-Credits”) from 0.0041% per day (limited up to 1.5% per year) to 0.0082% per day (limited up to 3% per year). The IOF-Credits tax applies to funds lent by legal entities to individuals, in the following transactions: (i) loans with predetermined and variable borrowed amounts; (ii) discounting of receivables; (iii) advance payment to the depositor; (iv)loan and financing where funds are borrowed in installments; (v) exceeding credit limits; and (vii) non-residential real estate financing.

It is worth mentioning that the abovementioned increase in the tax rate applicable to IOF-Credits is one of several economic measures, which have been recently announced by the Brazilian Finance Ministry, with the purpose of slowing down consumption and maintaining inflation under control.