Financial institutions will not need to pay retroactive IOF, says IRS

The Federal Revenue Service released, this Thursday (17), financial institutions from retroactive payment of the Tax on Financial Transactions (IOF). The Lula (PT) government issued a decree to increase the IOF, which was overturned by a decision of Congress.

Amid the impasse, Minister Alexandre de Moraes, of the Federal Supreme Court (STF), suspended the decisions of the Executive and Legislative branches on July 4.

As the Powers did not reach an agreement, Moraes decided the issue this Wednesday (16), declaring most of the presidential decree constitutional, except for the charge on "risk withdrawn" operations.

By waiving retroactive payments, the IRS applied the understanding of a 2022 Normative Opinion, which takes into account the decree's ineffectiveness during the suspension. In a statement, the IRS stated that it must still evaluate the situation of taxpayers who paid IOF during the period.

"The Federal Revenue Service will assess the situation regarding taxpayers and respond in a timely manner, seeking to avoid surprises and legal uncertainty in the application of the law," the statement said.