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When is IOF tax charged in Brazil?

Understand when IOF applies to your AstroPay transactions with BRL.

Daniela Martins avatar
Written by Daniela Martins
Updated over 4 months ago

IOF (Tax on Financial Transactions) is a Brazilian federal tax that may apply to currency exchanges and international purchases. But with AstroPay, you don’t always have to pay it. Here’s how it works:

When the IOF is 0%

You don’t pay IOF in any of the situations below because AstroPay pays the IOF for you:

  • When converting BRL to another currency (like USD or EUR) using AstroPay.

  • When using your BRL balance to make international purchases with the Global Astrocard.

  • Sending money from Brazil to abroad using your BRL balance

Good to know: This means you can pay or send money internationally using BRL without the 3.5% IOF, because AstroPay pays it for you.

When the IOF is 0.38%

A 0.38% IOF fee is charged only in the situation below:

  • You convert foreign currency into BRL (e.g., USD to BRL).

This is currently the only case where IOF applies for Brazilian users on AstroPay.

Do you ever pay 3.5% IOF?

No. With AstroPay, you never pay 3.5% IOF, even when using your card for international purchases. because AstroPay pays it for you.

Quick summary

Transaction type

IOF charged

BRL → foreign currency

0%

Foreign currency → BRL

0.38%

International purchases using BRL balance

0%

International purchases with AstroPay Card

0%

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