Investment Policy Monitor
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the Investment Policy Monitors and the UNCTAD-OECD Reports on G20 Measures.
In 2024, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2012 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for sustainable development.
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The UNCTAD's Investment Policy Monitor database include official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting FDI (FDI-specific), as well as general investment measures with a clear impact on foreign investment (FDI-related). The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases). The classification of measures as more or less favourable is based solely on their potential impact on investors.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Brazil - Reduces tax rates on foreign exchange transactions
Brazil
Reduces tax rates on foreign exchange transactions
18 Mar 2022On 15 March, the Brazilian Government issued Decree No. 10.997, which gradually reduces the tax rate of the "Imposto sobre Operaçoes Financeiras" (IOF), a tax on certain foreign exchange operations.
Under current legislation, tax rates for IOF vary between 0.38 and 6.38 per cent. Upon entry into force of Decree 10.997, tax rate on some specific operations (namely inbound loans with an average term not exceeding 180 days) will be reduced to zero. Taxes on other foreign exchange transactions (i.e. credit and debit card transactions, money withdrawal abroad, currency exchange transactions for the acquisition of foreign currency in cash and wire transfers) which are currently subject to a to 6.38 per cent rate will be reduced gradually by 1 per cent per year from 2 January 2023 on until reaching zero per cent rate, starting 2 January 2028.
Among other objectives, the new regulation seeks to offer equal conditions to domestic and foreign economic operators investing in Brazil, as until today only the latter had to pay the tax in order to invest in the country.
The regulation was published on 16 March and will enter into force on 18 March 2022.
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Type:
- Treatment and operation (Corporate taxation)
- Treatment and operation (Capital transfer and FOREX)
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Industry:
- Not industry specific
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Sources:
- Diario Oficial da Uniao, DECRETO Nº 10.997, DE 15 DE MARÇO DE 2022 , https://www.in.gov.br/en/web/dou/-/decreto-n-10.997-de-15-de-marco-de-2022-386092390, 16 Mar 2022
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the Investment Policy Monitors and the UNCTAD-OECD Reports on G20 Measures.
In 2024, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2012 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for sustainable development.
-
The UNCTAD's Investment Policy Monitor database include official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting FDI (FDI-specific), as well as general investment measures with a clear impact on foreign investment (FDI-related). The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases). The classification of measures as more or less favourable is based solely on their potential impact on investors.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.