The Brazilian Superintendence of Private Insurance (SUSEP) reported that an amendment to the decree regulating the Tax on Financial Operations (IOF) has been published, introducing a targeted change for Vida Gerador de Benefício Livre (VGBL) plans as part of the federal government’s fiscal adjustment package and to discourage use of these products outside their pension purpose. Under the new rule, a 5% IOF rate applies to monthly contributions funding VGBL plans when the policyholder’s total contributions exceed BRL 50,000 in the month, including where amounts are split across different insurers or entities. SUSEP indicated the measure should not affect most policyholders who make smaller regular contributions, and that there are no changes for other products it supervises, including traditional insurance, Plano Gerador de Benefício Livre (PGBL) plans, and capitalisation products. It also pointed to its February 2024 rules for PGBL and VGBL aimed at reinforcing their long-term financial protection function and curbing practices that could distort their design.
Brazilian Superintendence of Private Insurance (SUSEP) 2025-05-23
Brazilian Superintendence of Private Insurance reports 5% IOF on monthly VGBL contributions above BRL 50,000
The Brazilian Superintendence of Private Insurance (SUSEP) amended the decree on the Tax on Financial Operations (IOF), imposing a 5% rate on Vida Gerador de Benefício Livre (VGBL) plan contributions over BRL 50,000 monthly. Part of the federal fiscal adjustment package, this change aims to discourage non-pension use of VGBL plans. SUSEP noted it should not impact most policyholders with smaller contributions and does not affect traditional insurance and Plano Gerador de Benefício Livre (PGBL) plans.