Law No. 15,504 gives benefits and incentives under Article 11-C a five-year term, but three tax suspensions for data-center equipment expire Dec. 31, 2026.
The law suspends PIS/Pasep, Cofins and the Industrial Products Tax (IPI) on eligible components and other information and communications technology products used as fixed assets at data centers. The tax suspensions also cover imports. Federal rules will identify eligible products and govern implementation.
Import-duty relief applies only to equipment without a domestic equivalent and falls under the five-year term. The Dec. 31, 2026, cutoff applies to PIS/Pasep, Cofins and IPI, including those taxes on imports.
REDATA applies to projects that add, upgrade or expand data-center services in Brazil. Covered services include cloud computing, high-performance computing, and artificial intelligence training and inference.
Operators must make at least 10% of the effective supply of processing, storage and data-treatment services installed with REDATA benefits available to Brazil’s domestic market. Establishments in the North, Northeast and Center-West receive a 20% reduction in the domestic-service commitment and research-investment requirement.
Companies must meet sustainability requirements and cover their entire electricity demand through supply contracts or self-generation using renewable or low-emission sources, as regulations require. A yearly water-efficiency measure must be no higher than 0.05 liter per kilowatt-hour.
Participants must invest 2% of the value of products purchased domestically or imported with REDATA benefits in research, development and innovation in Brazil. A company may replace the domestic-service commitment with an additional investment equal to 10% of that product value. The three tax suspensions end Dec. 31, 2026; the separate import-duty benefit remains under the five-year term.
