Brazil’s Congress Approves Tax Exemptions to Attract Data Center Investments
The bill exempts PIS, Cofins, IPI and import duties on servers and refrigeration to attract investment after a 2025 proposal expired.
- On Tuesday, Brazil's Congress approved a bill exempting data-center equipment from federal taxes, part of the government's plan to lure such projects to the country.
- The government issued an executive order on the matter in 2025, but the proposal expired this year after it was not voted on by Congress.
- Proposed by Jose Guimaraes, the minister for institutional relations, the bill exempts PIS, Cofins, IPI, and import duties on IT-related capital expenditures such as servers and refrigeration.
- Following a previous greenlight from the lower house, the Senate approved the bill on Tuesday, sending the text to President Luiz Inacio Lula da Silva for ratification.
- By reducing operational costs for tech infrastructure, the legislation positions Brazil to compete for global data-center projects and solidify the country as a regional hub.
16 Articles
16 Articles
Senate Plenary Carlos Moura/Agency Senate The Senate Plenary approved the project that creates the Special Tax Regime for Datacenter Services (Redata), a system of tax incentives to stimulate the installation and expansion of data processing centers in the country. The text provides for the suspension of federal taxes on equipment in the sector and has estimated tax impact by the Federal Revenue in R$ 5.2 billion in 2026. Senators approved the p…
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EBCText has already passed through the House and now follows for presidential sanction
Brazil’s Congress approves tax exemptions to attract data center investments
BRASILIA, Sept 1 (Reuters) - Brazil's Congress on Tuesday approved a bill exempting data-center-related equipment from federal taxes, part of the government's plan to lure such projects to the country. • The Senate approved the bill on Tuesday, foll...
The Brazilian Senate adjusted the drafting of the energy requirement for Data Centers in the Redata, replacing “clean sources” with “renewable or low carbon sources”.
There will be no tax collection and federal contributions in the purchase of electronic components and information and communication technology products The post Senate approves project to attract data centers in Brazil; text goes to sanction appeared first on InfoMoney.
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