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Brazil prepares tax breaks for datacenters

Brazil prepares tax breaks for datacenters

BRASÍLIA: The Brazilian government is preparing a set of measures, including tax breaks, to boost the development and construction of datacenters in the country.

The announcement was made by André Borges, the head of telecommunications at the ministry of science, technology, innovation and communications, and a ministerial source confirmed these plans to BNamericas.

Speaking during a telecommunications seminar in federal capital Brasília, Borges said the measures will be presented regardless of and in parallel to the enactment of the new telecom framework, but he did not specify when.

The telecom bill was passed by the senate committees last year and was due to be signed into law by President Temer, but opposition parties managed to delay the signing claiming that the voting process was irregular. The bill has thus been returned to the upper house.

According to Borges, the new measures to support development of datacenter should come in the form of a decree or new bill. The initiative is expected to include state and federal taxes.

The secretary said that the presence of more datacenters in the country will increase international traffic and boost the submarine cable segment, as well as Brazil’s international communications with other countries.