Brazil removes IOF tax on depositary receipts sales
BRASILIA Dec 24 (Reuters) - The Brazilian government has removed a 1.5 percent tax on the issuance of depositary receipts abroad by local companies as a way to eliminate price disparities and arbitration between markets, a senior government official said on Tuesday.
Deputy Finance Minister Dyogo de Oliveira said the removal of the tax known as IOF will reduce additional costs for Brazilian companies that want to issue depositary receipts, an instrument that represents a foreign company's publicly-traded securities.
The government established the IOF tax on depositary receipts in 2009 as away to prevent local companies from issuing abroad in detriment of local stock sales. (Reporting by Alonso Soto, editing by G Crosse)