Dec. 15 (Bloomberg) -- Brazil’s central bank closed a loophole that allowed foreigners to circumvent the so-called IOF tax on financial transactions.
Foreign buyers of untaxed debentures will need to carry out another foreign exchange operation, and pay the 6 percent tax, if they sell the securities and switch to other assets on which it is levied, the central bank said in an e-mailed statement.
Finance Minister Guido Mantega eliminated the IOF tax on local corporate bonds with a duration of more than four years this month as one of a series of stimulus measures designed to prop up growth in Latin America’s largest economy.
--Editors: Richard Jarvie, Robert Jameson
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