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The tax base for the calculation of IOF is the sum of the premiums paid. The rate is 25%, but isreduced (arts. 21 and 22 of Decree 6,306/07):a) on the following operations: reinsurance; mandatory insurance, related to the financing of housing,conducted by an agent of the Financial Housing System; export credit insurance and internationaltransport of goods insurance; insurance taken out in Brazil, relating to the coverage of risks inconnection with the launching and operation of the Brasilsat I and II satellites; in which the sum of thepremiums is earmarked for funding life insurance plans with coverage for survival; aeronauticalinsurance and civil liability insurance paid to air carriers and performance bond: 0%;b) on life and related insurance, personal and occupational accident insurance operations, includingthe mandatory insurance for personal injuries caused by overland automotive vehicles and by vessels,or by their cargo, to persons transported or otherwise and excluding those dealt with in item “f” of subsectionI: 0.38%;c) on private health care insurance operations: 2.38%, andd) on other insurance operations: 7.38%.(iv) Operations relating to notes and securitiesThe taxable event of IOF is the purchase, assignment, redemption, renegotiation or payment forsettlement of notes and securities. Its taxpayers are: (a) the purchasers, in the case of the purchase ofnotes and securities and the holders of financial investments, in cases of redemption, assignment orrenegotiation; (b) the financial institutions and other institutions authorized to operate by Central Bankof Brazil (arts. 25 and 26 of Decree 6,306/07).The tax base for the calculation of the tax is the operation amount (of the purchase, redemption,assignment or renegotiation) and the maximum rate is 1.5% per day (arts. 28 and 29 of Decree6,306/07).Gold, as a financial asset or foreign exchange instrument, is currently also subject to IOF at the rate of1%, on the first purchase by a financial institution (arts. 36 and 39 of Decree 6,306/07).6.1.6. Social and other Contributions40

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