The recent Decree nº. 12.499/2025 adjusted the additional IOF-Credit rate for legal entities, reducing it from 0.95% to 0.38%.
Although this represents some relief compared to the previous proposal, the final cost of credit remains higher than prior to May 2025, when most operations were subject only to the daily rate of 0.0082%. Given the high exposure of industry and agribusiness to the credit market, the adjustments introduced by Decree nº. 12.499/2025 have significant impacts on the financing of these sectors.
Below are some of the main issues to be aware of:
1. Effective Increase in Credit Cost: Although the new rate is lower than initially proposed, the addition of a fixed fee on top of the daily rate raises the total cost, making routine and essential transactions more expensive. Companies that rely on credit for working capital and investments, especially medium-sized ones, will face greater cash flow pressures, requiring more careful planning.
2. Cumulative Effect on Long-Term Operations: The 0.0082% daily charge remains, which means that long-term financing—common for industrial expansion or agricultural projects—becomes increasingly costly over time. Multi-year contracts will see a greater IOF impact by the end of the period, jeopardizing the feasibility of modernization or rural infrastructure projects.
3. Reduced Margins and Competitiveness: The new IOF cost can squeeze profit margins in highly competitive sectors, especially in export agribusiness, where it is often impossible to pass the increased costs on to the final price. This affects both profitability and the ability to compete in international markets, impacting everyone from rural producers to food processing industries.
4. Discouragement of Investment: The increased cost of credit may lead companies to postpone or cancel expansion, modernization, or technology adoption projects, reducing their ability to innovate and grow. Facing higher costs, strategic decisions become more conservative, with a focus on maintaining, rather than expanding, operations.
5. Review of Financial Planning: Under the new rules, companies need to recalculate their financial costs and revisit their funding strategies. Management tools and specialized consulting become more valuable in seeking less expensive alternatives, such as own funds or capital market financing, to reduce IOF exposure.
While the rates have been partially eased by Decree nº. 12.499/2025, the new credit environment still presents significant restrictions, particularly due to regulatory instability, which increases uncertainty for medium- and long-term planning.
