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lalowei: It´s a tax that is used on credit operations, insurance acquisitions, currency exchanges, fixed or variable rate financial investments.

Some examples:

Buying stocks or bonds.
A bank gives you a loan.
You make purchases with your credit card.
You buy an insurance policy.
You make a currency exchange at a nearby exchange office.
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iuliand: Thanks for the info.
It seems to me it is a tax meant to slow economic progress. This kind of taxation encourage black economy.
On the bright side, this will decrease immigration because for sure I'll never move in Brasil with this kind of taxes... :P :))
Brazil: Where woman are hotter than average, and politicians are stupider than usual!
Post edited April 08, 2011 by Foxhack
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Foxhack: Brazil: Where woman are hotter than average, and politicians are stupider than usual!
Exact!
You said everything.
So, my credit card bill arrived today.

It looks like if I buy through paypal and let they convert the price to BRL through a financial institution of their choice, I'll be charged directly in BRL. Otherwise, I'm charged in dollars and my bank will charge me the IOF tax.

I noticed that in both cases, both institutions use whatever USD price they want, some cents higher than the official exchange rate of the day (in the case of the bank, it's the day the card bill is closed).

I'm yet to calculate the differences between both, but I believe it's not a big deal.

So, unless IOF is stuck into the exchange rate for that particular financial institution used by paypal, it seems that I don't pay the tax when using Paypal.
Post edited April 28, 2011 by Falci