EN 
PT_BR 
The IOF (Tax on Financial Operations) remains zero until the end of 2020 in cases of loans, financing, use of special checks or revolving credit. The decision was taken by the federal government, and published in the DOU (Official Gazette of the Union), on October 2nd.
Tax exemption for certain financial transactions was granted for the first time in early April. The objective was to alleviate the cost of people and companies financially affected by the Covid-19 pandemic. The measure was extended for the first time on July 3, when it would expire.
Now, extended for the second time, the measure is valid until December 31st. But what is IOF and how does its temporary exemption impact the photovoltaic market?
What is IOF?
The IOF is paid by individuals and legal entities when carrying out credit operations, such as loans, exchange, insurance or transactions relating to bonds or securities. Being a source of revenue for the federal government.
Your percentage of the value depends on the type of operation and this percentage can be changed by the government without the need for the National Congress to analyze and approve it.
Check the IOF Rate Table.
Source: Nubank
Impact on the photovoltaic market
Experts point out that with the suspension of the IOF, loans and financing will weigh less on the consumer's pocket until the end of the year, which can help entrepreneurs in the solar sector during the process of resuming economic activity. In this case, contributing to the increase in the purchase of photovoltaic systems by consumers across the country.
Bernardo Marangon, partner at Exata Energia and specialist in regulation and analysis of investments in the electricity sector, highlights that the impact will be felt in the pockets of investors and consumers. “The IOF rate is 0.38% of the loan value. In this sense, if the investor had a loan of R$ 1 million, he would save R$ 3,800”, explains Marangon.
Fábio Carrara, CEO and founder of Solfácil – fintech financing for photovoltaic projects - highlights the main benefits of the measure taken by the government.
“The IOF exemption is great news for the solar energy sector, because in practice, it makes the total effective cost of transactions lower. This means that financing installments will be reduced and photovoltaic solar projects will become more economically viable for the population. This movement should further stimulate demand for photovoltaic solar energy, which is already growing in the country.”
“It is worth remembering that, in the coming months, as summer approaches, we will have a greater demand for solar energy, due to the increase in energy consumption, correlated with the greater use of air conditioning. As a result, people will have an impact on their monthly electricity bill, which will be higher. This entire context encourages the installation of solar energy systems and brings benefits to the consumer”, adds Carrara.
Jonny Mocelin, operations director at Halfen Energy, highlights the impact on the end consumer's pocket. “There is a difference for small customers, as the value ends up being proportional to the size of the photovoltaic system. Furthermore, it results in a lower cost for the customer, and this exemption can be used as a sales argument by professionals in the sector”, emphasizes Mocelin.
“Few consumers are aware of the exemption. And I realized that there was greater interest when they found out about our explanation”, says the executive, highlighting the sales potential that the exemption brings.
