On September 15, 2026, the Brazilian President assented to Bill No. 278/2026 without vetoes, signing it into law as Law No. 15,504/2026 and establishing the Special Tax Regime for Data Center Services (ReData). This initiative reinforces the country’s intent to position itself as a competitive destination for investment in digital infrastructure by reducing the federal tax burden on the deployment of data centers.
Legislative process
ReData was originally enacted in 2025 through Provisional Measure No. 1,318 (more information available in our previous report). However, it eventually lapsed on February 25, 2026, without being converted into law.
In parallel, the substance of Provisional Measure No. 1,318/2025 was reintroduced via Bill No. 278/2026, which was approved by Brazil’s House of Representatives on February 24, 2026, and then by the Senate on September 1, 2026, before being signed into law as Law No. 15,504/2026 on September 15, 2026.
Eligible companies
Legal entities involved in implementing projects to install, modernize or expand data center services in Brazil will be eligible to enroll in the ReData regime. Under Law No. 15,504/2026, data center services are defined as services involving infrastructure and computing resources dedicated to storing, processing, and managing data and digital applications, including cloud computing, high-performance computing, artificial intelligence training and inference, and related services.
Tax incentives
ReData provides for the suspension of taxes levied on acquisitions and imports of information and communication technology (ICT) products intended for use as fixed assets. For purchases in the domestic market, the suspension covers PIS/COFINS and the Excise Tax on Industrialized Products (IPI). For imports, it covers PIS/COFINS-Import, IPI and, in the case of goods that have no equivalent domestic production, the Import Tax (II).
The IPI suspension does not apply to electronic components and other products manufactured in the Manaus Free Trade Zone (ZFM).
The regime establishes a five-year period during which the incentives may be claimed. However, due to the ongoing transition brought on by Brazil’s tax reforms, the PIS/COFINS and IPI benefits will remain in effect only through December 31, 2026.
For further information on this topic, please contact Mattos Filho’s Tax and Digital Infrastructure practice areas.
