Brazil Lower House Approves Bill on Tax Incentive for Data Processing Centers

The Brazilian Chamber of Deputies Feb. 25 approved Bill No. PL 278/2026, to establish the Special Taxation Regime for Datacenter Services (REDATA). The bill includes measures to: 1) grant a five-year suspension of import tax, tax on industrialized products (IPI), social integration contribution (PIS/PASEP), social security contribution (COFINS), and related import contributions on the domestic purchase or import of information and communication technology equipment incorporated into data center fixed assets; 2) convert the suspension to a zero rate upon fulfilling regulatory commitments and incorporating assets; 3) require participants to allocate at least 10 percent of processing capacity to the domestic ...