Four Internet of Things (IoT) related tax relief provisions are due to expire on December 31, 2025.  Two bills were introduced in Brazil’s National Congress to extend these provisions and are currently in debate under a fast-track rule.  Companies that provide and implement IoT projects can engage congressional leaders to secure the bills’ approval.

Tax Relief Provisions

The Brazilian Internet of Things Act of 2020 reduced to zero four fees and contributions for companies implementing and operating IoT projects:

• The Installation Oversight Fee (“TFI”), due when the authorization is granted to operate IoT stations;
• The Operation Oversight Fee (“TFF”), due annually;
• The Public Broadcasting Support Contribution (“CFRP”), due annually; and
• The National Film Production Development Contribution (“Condecine”), due annually.

Some of these fees and contributions, as well as roaming-related restrictions to international IoT providers, are listed in the Brazil section of the Office of the United States Trade Representative 2024 National Trade Estimate Report on Foreign Trade Barriers.

Bills in Congress

Two bills were introduced in Brazil’s House of Deputies to extend the current tax relief.  The first bill amends the 2020 act by extending the sunset clause for another five years, until December 31, 2030.

The second bill amends tax laws to make the tax relief permanent.  It also has provisions to reduce the cost of satellite direct-to-cell internet services. Both bills are still in the early stages of the legislative process and will require approval by four House committees.  They are also under the so-called House “terminative rule,” which allows the bills to move directly to the Senate, without a House floor vote, if the committees approve them.