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

Reuters

Tue, September 1, 2026 at 7:26 PM EDT 1 min read

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, 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

(Reporting ​by ‌Maria Carolina Marcello in Brasilia and ​Andre Romani in Sao Paulo, Editing ​by Natalia Siniawski)