The recent increase in the Financial Operations Tax (IOF) rates has brought the issue back to the center of the economic debate. Created to regulate credit and exchange operations, the tax has become an even heavier burden on consumers' wallets, especially those who travel abroad or make international purchases with credit cards.
In practice, this represents an immediate cost impact on the budget. After all, all foreign exchange transactions with international credit and debit cards, cash purchases, international prepaid cards, and traveler's checks for personal expenses will be subject to a 3.5% tax rate. Previously, it ranged from 1.1% to 3.38%.
A simple dinner in Paris, a purchase in New York, or even subscribing to an online service can end up being more expensive just because of the taxes levied on the transaction.
Discussions surrounding the IOF (Tax on Financial Operations) have become more prevalent in a context marked by a significant increase in international travel and consumption in foreign currency. Therefore, this is not a topic restricted to specialists, but one that affects the wallets of millions of Brazilians.
It is in this context that BTG Pactual is launching, this Monday, August 25th, a campaign that promises to redefine the experience of Brazilians who use international credit cards: IOF Zero.
The benefit completely eliminates the import tax on international purchases made with both credit and debit cards from BTG Pactual. The benefit also extends to international cash withdrawals using both credit and debit cards.
By removing the IOF tax from the equation, BTG Pactual transforms each international transaction into concrete savings for the client – an advantage with an immediate effect, directly felt in the consumer's pocket.
BTG Pactual's initiative is not limited to offering financial relief to clients, but also addresses the growing demand for greater security, convenience, and intelligence in the use of money abroad.
Besides being risky, carrying large amounts of cash has become unnecessary given the widespread digitalization of payment methods.
BTG Pactual cards offer additional layers of fraud protection, easy blocking in case of loss or theft, and integration with apps that allow real-time control of expenses.
The launch of IOF Zero by BTG Pactual truly inaugurates a new era for international consumption.
While the IOF (Tax on Financial Operations) has become a symbol of the complexity of the Brazilian tax environment in recent years, BTG Pactual's initiative points in a different direction: creating solutions that simplify the client's life and make international travel more economical, safe, and enjoyable.