Two taxes can apply: income tax (IR) and IOF. Whether you pay income tax depends on the security; IOF only applies if you withdraw very early.
Securities that are taxed
CDB, LC, LF, Tesouro Direto and regular debentures are subject to income tax.
The tax applies only to your earnings — never to the amount you invested. It follows the regressive table, so the longer you stay invested, the lower the rate:
Up to 180 days: 22.5%
181 to 360 days: 20%
361 to 720 days: 17.5%
Over 720 days: 15%
The tax is withheld at source — at withdrawal, at maturity, or at coupon payment. You receive the amount already net and don't need to issue any payment form.
Securities that are exempt
LCI, LCA, CRI, CRA and incentivised debentures are exempt from income tax for individuals. The earnings are 100% yours.
IOF
IOF only applies if you withdraw less than 30 days after investing. It's charged on your earnings, on a regressive scale: 96% on day 1, falling to 0% on day 30.
From day 30 onward there is no IOF at all — so waiting out the first month is usually worth it.
Annual tax return
Even when exempt, your investments must be reported in your annual income tax return:
Balances under Bens e Direitos (assets)
Earnings under Rendimentos Isentos (exempt income) or Rendimentos Sujeitos à Tributação Exclusiva (income subject to exclusive taxation), as applicable
The amounts you need appear in the earnings report (informe de rendimentos) we make available every year.