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.

Photo of Kimberly Breier Kimberly Breier

Kimberly Breier has more than 20 years of experience in foreign policy, primarily focused on Western Hemisphere affairs. Prior to joining the firm, Ms. Breier, a non-lawyer, was Assistant Secretary in the Bureau of Western Hemisphere Affairs at the U.S. Department of State.

Kimberly Breier has more than 20 years of experience in foreign policy, primarily focused on Western Hemisphere affairs. Prior to joining the firm, Ms. Breier, a non-lawyer, was Assistant Secretary in the Bureau of Western Hemisphere Affairs at the U.S. Department of State. She also served as the Western Hemisphere Member of the Policy Planning Staff.

Ms. Breier was previously the founder and Director of the U.S.-Mexico Futures Initiative, and the Deputy Director of the Americas Program at the Center for Strategic and International Studies (CSIS). She also was Vice President of a consulting firm, leading country risk assessment teams for private clients in Mexico, Argentina, and Chile.

In addition to her private sector and think tank experience, Ms. Breier served for more than a decade in the U.S. intelligence community as a political analyst and manager, primarily focused on Latin America.

From January 2005 to June 2006, Ms. Breier served at the White House in the National Security Council’s Office of Western Hemisphere Affairs, first as Director for Brazil and the Southern Cone, then as Director for Mexico and Canada, and also as an interim Director for the Andean region.

Prior to her government service, Ms. Breier was a senior fellow and director of the National Policy Association’s North American Committee—a trilateral business and labor committee with members from the United States, Canada, and Mexico.

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Photo of Diego Bonomo Diego Bonomo

Diego Bonomo is a senior advisor in the firm’s London office. Diego, a non-lawyer, has more than 20 years of Brazil regulatory, trade, and foreign affairs experience at leading business associations, think tanks, companies, and academic institutions. Diego also served in the Brazilian…

Diego Bonomo is a senior advisor in the firm’s London office. Diego, a non-lawyer, has more than 20 years of Brazil regulatory, trade, and foreign affairs experience at leading business associations, think tanks, companies, and academic institutions. Diego also served in the Brazilian government.

Before joining the firm, Diego was Team Leader of the Brazil Trade Facilitation Program at Palladium and Executive Manager for International Affairs at Brazil’s National Confederation of Industry (Confederação Nacional da Indústria, CNI). At the U.S. Chamber of Commerce, he served as Senior Director of the International Division and Senior Director for Policy of the Brazil-U.S. Business Council. Diego also was Executive Director of the Brazil Industries Coalition (BIC), the leading Brazilian business coalition in the United States, and General Coordinator of Foreign and Trade Affairs at the Federation of Industries of the State of São Paulo (Federação das Indústrias do Estado de São Paulo, FIESP). He previously served in the Office of the President of Brazil as advisor to the Minister of Long-Term Planning.

Diego holds a bachelor’s and master’s degree in international relations from the Pontifical Catholic University of São Paulo.

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