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 failing to receive a congressional vote.
- Exemptions include PIS, Cofins, IPI, and import duties on IT-related capital expenditures, specifically 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 final ratification.
- Minister for Institutional Relations Jose Guimaraes proposed the legislation this year, previously serving as government leader in the lower house before his current role.
23 Articles
23 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 Federal Senate approved on Tuesday (1st) Bill (PL) 278/2026, which establishes a tax regime to encourage the installation of data centers in the country. Data centers are physical structures that concentrate computers and servers that store, process and distribute large volumes of data and digital applications. The text, which has already been [...] The post Senate approves project that creates incentives for data centers in Brazil appeared …
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 [...]
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
