- Brazil introduced a Provisional Measure (PM) on 17 September 2025, creating special tax regimes (REDATA and REPES) to incentivize datacentre and IT service exports.
- Eligible projects can suspend certain federal taxes, especially on imported equipment, to attract investment and expand digital infrastructure.
- REPES targets IT service and software companies focused on exports, while REDATA is for entities installing or expanding datacentres in Brazil.
- Tax suspensions include PIS/Cofins, IPI, and import duties for qualifying products, with changes expected under the 2027 tax reform.
- Beneficiaries under REDATA must invest in R&D, allocate processing capacity to the domestic market, and meet sustainability requirements.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Brazil"
- São Paulo Eliminates ICMS Tax Substitution for Hundreds of Products Starting 2026
- Trickiest countries in which to achieve compliance
- Brazil Updates Indirect Tax Reporting Rules for 2026 Including IBS, CBS, IS
- STJ Suspends Appeals on ICMS DIFAL Inclusion in PIS/COFINS Tax Base Nationwide
- STF Prohibits Retroactive ICMS Collection on Intra-Company Transfers Before 2024
