Why is there a difference in the IOF rate charged on exchange remittances to my current account and to my investment account?

In accordance with Brazilian tax legislation, in exchange remittance transactions, the IOF rate charged is defined according to the purpose of sending the amounts to another country. If the objective is to invest, the IOF applied to the transaction will be 0.38%. The amounts of this type of foreign exchange remittance must be invested in order to fulfill the purpose of the transaction properly.

If the amounts are sent for availability in a checking account outside Brazil, the IOF tax will be 1.1%. In this case, the amounts can be used as you wish, whether for purchases, withdrawals or transfers.