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 support investment in the sector.
- On Tuesday, Brazil's Congress approved a bill exempting data-center equipment from federal taxes, part of the government's plan to attract infrastructure projects to the country.
- This legislation follows an executive order issued in 2025 that expired after Congress failed to vote on it, formalizing the government's strategy for tech sector expansion.
- The measure eliminates federal PIS, Cofins, IPI, and import duties on IT-related capital expenditures, specifically targeting essential infrastructure such as servers and refrigeration equipment.
- Having cleared the Senate after a prior greenlight from the lower house, the legislation now heads to President Luiz Inacio Lula da Silva for final ratification.
- Minister for Institutional Relations Jose Guimaraes proposed the bill earlier this year to enhance Brazil's competitiveness in attracting major technology investments.
20 Articles
20 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 Senate approved on Tuesday (1st) the project that creates the Special Tax Regime for Datacenter Services (Redat). No changes of merit, the proposal now follows for punishment of President Lula. The rapporteur was Senator Cid Gomes (PSB-CE). For Ceará, approval has special weight. The State is already in the center [...] The post With Cid rapporteur, Redata advances in the Senate and opens strategic window for Ceará appeared first in Focus Po…
After coming and going, Casa votes for Redata bill without having to go back to the Chamber of Deputies
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