Scope of application
ReData aims to expand Brazil’s capacity for data storage, processing, and management by encouraging the installation and expansion of data centers in the country. Its focus is on the promotion of technological development and the reduction of dependence on digital services provided abroad.
For the purposes of Provisional Measure No. 1.318/2025, data center services are defined as those involving infrastructure and computing resources dedicated to the storage, processing, and management of digital applications, including cloud computing, artificial intelligence, high-performance computing and related services.
Beneficiaries
Legal entities that implement projects for the installation or expansion of data center services within Brazilian territory may apply for qualification under the ReData regime, in accordance with conditions to be defined by future regulations. The regime also provides for the co-qualification of legal entities that supply information and communication technology (ICT) products, either manufactured or commissioned, for incorporation into the fixed assets of a qualified ReData beneficiary.
Participation
The regime provides two forms of participation:
- Qualification, intended for legal entities implementing projects to install or expand data center services within Brazilian territory
- Co-qualification, aimed at legal entities that supply ICT products to be incorporated into the fixed assets of a ReData qualified beneficiary
Both qualification and co-qualification will be granted by the Federal Revenue Service, in accordance with specific regulations to be issued.
Tax benefits
- Suspension of federal taxes on revenue from domestic sales and imports of electronic components and other ICT products destined for the fixed assets of qualified legal entities, including PIS/Cofins, IPI (except for goods manufactured in the Manaus Free Trade Zone) and Import Tax (when there is no national equivalent).
- Co-qualified entities may also use the tax incentives to resell goods to ReData qualified entities.
- Time limitation: The tax benefits mentioned in art. 11-C will take effect on 1 January 2026, and are limited to the year 2026, in accordance with the Tax Reform transition.
Main requirements and obligations
ReData beneficiaries must invest at least 2% of the value of the ICT products purchased (domestic or imported) with ReData benefits in research, development and innovation projects aimed at Brazil's digital production chains.
Additionally, it is mandatory for beneficiaries to allocate at least 10% of data processing, storage, and management capacity for the domestic market. This requirement is reduced by 20% for operations located in the North, Northeast, and Central-West regions of Brazil.
Projects covered by the regime must meet strict sustainability criteria, including the exclusive use of energy from renewable or clean sources and specific standards for water efficiency.
Failure to comply with these obligations results in the loss of tax benefits, mandatory payment of suspended taxes, including applicable fines and interest, and prohibition from reentering the regime for a period of two years.
Regulation and oversight
Responsibility for monitoring and ensuring compliance with the targets lies with the Ministry of Development, Industry, Trade and Services and the Ministry of Finance, which may also issue complementary regulations.
Entry into force
Provisional Measure 1.318/2025 takes effect on September 17, 2025, except for the tax benefits provided for in article 11-C, which come into effect on 1 January 2026. The MP must be voted by Congress within 60 days, extendable for another 60, otherwise it will lose its effectiveness.
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