Federal Government establishes Special Taxation Regime for Data Centers
The Federal Government established the Special Taxation Regime for Data Center Services (REDATA) through Provisional Measure (MP) No. 1,318, published on September 18, 2025. The initiative represents a strategic step toward consolidating Brazil as a digital infrastructure hub, reducing tax barriers that increase the cost of installing and operating data centers.
The MP incorporates REDATA into Law No. 11,196/2005, which already includes incentives for the technology sector, such as the Special Taxation Regime for the Information Technology Services Export Platform (REPES).
Legal entities implementing projects to install or expand data center services in Brazil may qualify for the regime. Data center services are those involving infrastructure and computing resources dedicated to the storage, processing, and management of data and digital applications, including cloud computing, high-performance processing, and artificial intelligence.
The MP establishes a set of tax incentives and regulatory obligations. Key points include:
Senate approves PLP 108 with adjustments to tax reform
The Senate's Constitution and Justice Committee (CCJ) approved the second supplementary bill aimed at regulating tax reform, PLP 108 of 2024. The vote was symbolic, meaning there was no roll call vote count. The bill had already been approved by the Chamber of Deputies in October 2024 and underwent several changes while under review.
PLP 108/2024 establishes the creation of the IBS (Tax on Goods and Services) Management Committee, comprised of representatives appointed by states and municipalities. The committee will oversee the implementation and enforcement of the new tax.
The rapporteur introduced a series of significant changes compared to the previous text, involving taxation, tax benefits, and governance rules. These include:
Consolidated tax documents: The Management Committee and the Federal Revenue Service may authorize joint issuance for simplification purposes (Article 60, §7).
Municipal participation in the committee: Exemption from minimum support for the election of the Superior Council; regulations will be defined by the CNM and FNP; the winning ticket will need at least 30% of the votes (Article 8, §2).
ITCMD: Not levied on private pension, insurance, annuity, or similar benefits (Article 150, item III).
Split Payment: Optional application for all B2B transactions; automatic adoption when IBS and CBS details are not provided; balance refunds within 3 business days; credits are prohibited until payment is confirmed (Article 33). S
Simplified Tax Regime: Possibility of postponing payment of IBS and CBS on imports until delivery of goods (Articles 76, §3 and 126, §6).
IBS Reference Rate: Changes to the methodology for calculating the estimated tax percentage (Articles 361 to 365).
Brazil and Chile sign new protocol to avoid double taxation
The Senate Plenary approved the Legislative Decree Project (PDL) 722/2024, which ratifies the protocol signed between Brazil and Chile to avoid double taxation of Income Tax and prevent tax evasion practices. The bill now awaits enactment. The protocol was signed in March 2022, in Santiago, and modifies sections of the tax convention established between the two countries in 2021. Among the adjusted points are the definitions of who is considered a resident, the taxation rules on pension funds, royalties, and permanent establishments, as well as standards for international cooperation and information exchange.
The agreement revises technical points of the previous convention, aligning them with international taxation standards. The changes cover, for example:
One of the protocol's central points is strengthening the exchange of information between the tax administrations of Brazil and Chile. The Brazilian government emphasized that this update follows the international standards of the Organization for Economic Cooperation and Development (OECD). The goal is to improve mechanisms to combat tax evasion in a context of increasing mobility of capital, people, and business activities.
Provisional Measure creates R$12 billion credit line for rural producers
President Luiz Inácio Lula da Silva signed a Provisional Measure (MP) last Friday (5) that creates a R$12 billion credit line for the settlement of rural credit operations and Rural Producer Bonds (CPR) for farmers affected by adverse weather events. According to Federal Government projections, up to 100,000 producers could benefit, including farmers in Rio Grande do Sul, affected by droughts and floods in recent years.
The measure provides priority service to small and medium-sized producers, who represent 96% of beneficiaries and have delinquent or extended debts. The National Monetary Council will define the conditions for access to credit, with limits and differentiated interest rates:
Eligible municipalities, defined as those declared to be in a state of public calamity or emergency by the Federal Government for at least two years between July 1, 2020, and June 30, 2025, may also be served.
Sovereign Brazil Plan: Measures to protect Brazilian exporters from US tariffs
On August 13, 2025, Provisional Measure (MP) No. 1,309 was published, establishing the so-called “Sovereign Brazil Plan”, establishing a set of measures aimed at mitigating the economic impacts of the 40% increase – increasing the total rate to 50% – in import tariffs on certain Brazilian products, announced by the US government.
The National Bank for Economic and Social Development (BNDES), through the Export Guarantee Fund (FGE), will release up to R$30 billion in credit as a source of resources to provide financing lines to individuals and legal entities exporting goods and services, as well as their suppliers, especially those impacted by the imposition of additional tariffs on Brazilian exports by the United States.
Complementary ordinances to support exporting companies were also added. Here are the main highlights:
Joint Ordinance MF/MDIC No. 17/2025
Joint Ordinance MF No. 1,862/2025
Reintegra – Key Measure
Increased income tax and financial operations tax on stablecoins generates a backlash in the crypto sector and could drive away investors
The cryptoasset sector reacted negatively to the possibility of applying a standardized 17.5% tax rate to cryptocurrency transactions and the creation of a Financial Transactions Tax (IOF) on stablecoins, proposals currently being discussed by the federal government.
According to industry representatives, in addition to not having been previously discussed with the market, the changes could discourage local investors, reduce tax revenue, and increase tax evasion.
Currently, cryptocurrency transactions on local exchanges follow a progressive income tax rate, ranging from 22.5% to 15%, depending on the investment term.Investors who move up to R$35,000 per month in crypto are exempt from taxation. Those who use international exchanges follow the same rules for foreign investments, with a flat rate of 15%.
It is not yet clear whether the new 17.5% rate will also apply to transactions carried out on foreign exchanges. If not, experts warn that this could encourage the transfer of funds abroad. In addition to the proposed flat tax rate for cryptocurrencies, the government is considering applying IOF (Tax on Financial Transactions) to transactions involving stablecoins, classifying them as exchange transactions.
The proposals to increase cryptocurrency taxation and create IOF (Tax on Financial Transactions) on stablecoins are divisive. While the government seeks to standardize rules and increase revenue collection, crypto sector representatives warn of the risk of investor flight, migration to foreign platforms, increased tax evasion, and a loss of competitiveness for local exchanges.
End of PERSE increases tax burden on events and tourism companies
The end of the Emergency Program for the Recovery of the Events Sector (PERSE) continues to generate uncertainty among tourism and events companies. Created during the pandemic, the program offered tax exemptions to support economic recovery. With its termination, companies are facing increased tax burdens and seeking alternatives to mitigate the impacts.
Some companies are considering restructuring, cost cutting, and even moving part of their operations out of Brazil. While a definitive decision is awaited in lawsuits seeking to reinstate the benefit, the sector must adapt to the new tax reality.
According to the Federal Revenue Service, PERSE incentives reached the R$15 billion cap established by law in March 2025. With the limit exhausted, the benefits were terminated the following month.
The measure affects companies across various segments, including travel agencies, tour operators, restaurants, and theme parks. All companies now fully pay taxes such as ICMS, IPI, ISS, PIS, COFINS, and IRPJ.
