Brazil's Congress approves tax exemptions to attract data center investments

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Brazil's Congress approves tax exemptions to attract data center investments
Luiz Inacio Lula Da Silva, ‌Part, Reuters

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

A drone view shows a Brazilian flag fluttering near the Square of the Three Powers and the National Congress, in Brasilia, Brazil August 1, 2025.

REUTERS/Adriano MachadoBRASILIA, Sept 1 - 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, following a previous greenlight from the lower house; ‌the text now ⁠heads to President Luiz Inacio Lula da Silva for ratification • ⁠The bill exempts key federal taxes - PIS, Cofins, IPI, and import duties - on ​IT-related capital ​expenditures for ​the sector, such as ‌on servers and refrigeration • 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 • ​The text approved on ​Tuesday is ​a similar bill, proposed this ‌year by the then ​government leader ​in the lower house Jose Guimaraes, now the minister for institutional relations

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Luiz Inacio Lula Da Silva ‌Part Reuters ​A Jose Guimaraes Carolina Marcello Natalia Siniawski Tuesday Senate BRASILIA

 

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