Measure raises rate from 0.38% to 3.5% (increase of 821%) and makes remittances abroad for the acquisition of software and IT services more expensive, affecting the sector's competitiveness and contradicting digital transformation policies
The Brazilian Association of Software Companies (ABES) is concerned about the negative effects of Decree No. 12,466/2025, which increased the IOF rate on foreign exchange transactions intended for the transfer of funds abroad from 0.38% to 3.5%. The new rule came into effect on May 23 and applies, among other transactions, to payments related to software licenses, marketing and information technology services. The legislative change is even more perverse because it also burdens business transactions and contracts. signed before the publication of the decree, in relation to which payments to suppliers will be made after May 23, generating economic and financial imbalance to the detriment of companies supplying software and IT services.
ABES members have focused their concerns on remittances abroad for payment of services in general and software — both in cases of acquisition of licenses for own use and in remuneration for distribution rights of solutions developed by third parties. For the sector, the increase in the rate imposes a significant obstacle to the continuity of these contractual relationships, which mostly involve international operations. For the Association, the measure directly compromises the ability of Brazilian software and IT services companies to maintain international operations, sign contracts with global suppliers and access technological solutions that drive digitalization and innovation in the country.
“This is a significant increase in the tax burden on the technology production chain. Penalizing companies for using international technologies or providing services abroad is incompatible with the goal of making Brazil an innovation hub,” says Manoel Antônio dos Santos, legal director at ABES.
ABES reiterates that the sector is strategic for national development. According to the ABES 2025 Software Market Study, Brazil generated R$315 billion in software, services and exports in 2024, equivalent to R$1.31 billion of GDP. The country remains in 10th place in the world ranking of investments in information technology, and a large part of this volume depends on relationships with international companies and platforms.
In addition to affecting companies with international operations, the increase in IOF also has a disproportionate impact on the ecosystem of small and medium-sized technology companies. According to ABES, SMEs are the most affected, since many of them depend on cloud services, licensing of foreign platforms and frequent remittances to technical partners outside Brazil.
“The increase in IOF imposes an even greater burden on SMEs in the technology sector, which already deal with a high tax burden and struggle to remain competitive in an increasingly demanding global market,” adds Santos.
In ABES' view, the increase in IOF also discourages the internationalization and competitiveness of the sector. It also creates legal uncertainty and runs counter to government initiatives to stimulate the digital transformation of the Brazilian economy.
“The measure goes against the country’s digitalization efforts and imposes a disproportionate burden on companies that already face structural challenges to innovate and compete globally. ABES advises its members to consult the entity’s legal counsel for clarification on the impacts and possible measures to be adopted,” says Andriei Gutierrez, president of ABES.
About ABES
ABES (Brazilian Association of Software Companies) aims to contribute to the construction of a more digital and less unequal Brazil, in which information technology plays a fundamental role in the democratization of knowledge and the creation of new opportunities for all. In this sense, it aims to ensure a business environment conducive to innovation, ethical, dynamic, sustainable and globally competitive, always in line with its mission of connecting, guiding, protecting and developing the Brazilian information technology market.
Currently, ABES represents around 2,000 companies, which total approximately 80% of the software and services sector's revenue in Brazil, distributed across 24 states and the Federal District, responsible for the generation of more than 260 thousand direct jobs and an annual revenue of around R$103 billion in 2024. Access the ABES Portal or call +55 (11) 5094-3100.
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