The REDATA regime is aimed at encouraging the growth of data centres in Brazil by fostering digital infrastructure development and attracting investments.
Brazil’s government published Provisional Measure 1.318/2025 in the Official Gazette on 18 September 2025.
Provisional Measure 1.318/2025 introduces a special taxation regime for data centre services (REDATA) and effectively suspends PIS/PASEP/COFINS from 1 January 2026, IPI and import taxes and other items from the publication date.
The REDATA regime in Brazil aims to boost the growth of data centres by promoting digital infrastructure and attracting sector investments. It applies to companies implementing data centre projects and extends to manufacturers of ICT products used in the fixed assets of eligible beneficiaries, who can qualify as co-beneficiaries.
To access REDATA benefits, legal entities must apply for qualification and commit to several requirements, including:
- Investing 2% of the value of locally purchased or imported items benefiting from REDATA in R&D projects.
- Complying with sustainability regulations.
- Meeting specific water efficiency standards.
- Sourcing electricity from clean or renewable resources.
- Ensuring that at least 10% of installed data processing, storage, and processing capacity serves the domestic market.
The REDATA programme allows suspension of certain taxes on the domestic sale and importation of electronic components and other ICT products, provided they are used as fixed assets by the qualifying legal entity. The taxes covered include PIS/PASEP and COFINS (both local and import), IPI (tax on manufactured products), and Import tax.
These tax incentives are generally valid for five years. However, those related to PIS/PASEP, COFINS, and IPI specifically are available only until 31 December 2026.
