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 Brazil's data center sector.
- On Tuesday, Brazil's Congress approved a bill exempting data-center equipment from federal taxes, aiming to attract infrastructure projects to the country.
- The government previously issued an executive order on the matter in 2025, but the proposal expired this year after Congress failed to vote on it.
- This legislation removes federal taxes—including PIS, Cofins, IPI, and import duties—on IT-related capital expenditures, covering investments in servers and refrigeration equipment.
- Having passed the Senate following a prior greenlight from the lower house, the text now moves to President Luiz Inacio Lula da Silva for ratification.
- Minister for Institutional Relations Jose Guimaraes proposed the legislation this year after previously serving as government leader in the lower house.
21 Articles
21 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…
CartaCapital
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 passed on Tuesday (1) a bill establishing the Special Tax Regime for Datacenter Services (Redata), in order to encourage the installation and expansion of data centers in Brazil. Approved in symbolic vote, the text received contributions during the Senate process, but senators considered the changes merely editorial [...]
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…
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
