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Personal · Credit and loans · Credit Cards

How is IOF tax applied to credit cards?

IOF (Tax on Financial Operations) is applied to balances with interest. There are two types — daily IOF (0.0082%, capped at 3%) and one-time IOF (0.38%). These taxes are calculated on revolving balances, statement financing (instalments), and international purchases.

Revolving balances refer to the unpaid or remaining balances found on your statements.