ISS Tech

Municipal Law 7,000/2021 established a reduction of the ISS tax rate from 5% to 2% for companies engaged in technology-related activities and located in Porto Maravalley and the Rio Technology Park on Fundão Island.

Among the sectors benefiting are IT services, online-only service contract intermediation between individuals, research and development, and biology, biotechnology, and chemistry.

The measure represents a significant advantage for companies in the sector and contributes to the development of innovation hubs, which aim to concentrate investors, technology enterprises, and startups. It also helps stimulate the creation of new jobs and the local economy, boosting commerce, service provision, and the occupancy rate of these neighborhoods.

Data Center Hub

The State of Rio de Janeiro has enacted Law 10,431/24, which provides a fiscal benefit of ICMS deferral for data centers located in the state, applicable to import operations of equipment intended for integration into the company’s fixed assets.

For operations not covered by the deferral, the state’s differentiated regime provides full ICMS exemption on goods or assets acquired by the beneficiary and intended exclusively for the construction, expansion, or enlargement of the enterprise, with the benefit prohibited for acquisitions intended for the facility’s regular operation.

This state-level fiscal incentive further strengthens the City of Rio de Janeiro’s vocation for fostering and hosting technology-related projects.

Porto Maravalley, together with the tax incentives from Municipal Law 7,000/2021, creates the ideal environment for establishing a data center hub in the city. Among the projects under consideration, the City Hall is evaluating the possibility of expanding data processing centers to offshore regions.

Submarine data centers are emerging as a new option for data storage, offering advantages such as lower network latency and increased security, as they are more difficult to access.

In this context, Rio de Janeiro offers a strategic location for installing these hubs, as it is one of the landing points for submarine cables connecting Brazil to other continents.

Stock Exchange

Law 8,467/2024 was approved by the Rio de Janeiro City Council to reduce the ISS tax rate from 5% to 2%, exclusively for companies engaged in stock exchange activities and established in the state capital.

The law amends Article 33 of the Rio de Janeiro Municipal Tax Code to include, among the specific ISS rates, services provided by companies that carry out stock exchange, commodities, and futures activities, as well as activities performed by clearing and settlement houses.

The purpose of this tax incentive is to make Rio de Janeiro competitive with B3, located in São Paulo, which currently concentrates all stock, derivatives, and futures market transactions in the country.

The expectation is that Rio’s stock exchange will increase ISS revenue for the municipality, not only due to the sector’s revenue growth but also by attracting new taxpayers from various segments, which should generate further investments in the city and the creation of numerous new local jobs.

ISS Neutro

Municipal Law 7,907/23 established the ISS Neutro Program to encourage the reduction of greenhouse gas emissions through tax incentives for key participants in the carbon market.

The program reduces the ISS tax rate from 5% to 2% on the following services:

  • Development and auditing of carbon credit projects

  • Registration and certification of carbon credits

  • Provision of carbon credit trading platforms (Green Exchange)

  • Inventory and auditing of greenhouse gas emissions

Carbon credits can be offset against ISS payable, respecting a maximum limit of 5% of the total tax due. To take advantage of the incentive, taxpayers must comply with the qualification rules established in the public notice.

Additionally, the program provides for a 2% ISS rate on carbon credit transactions carried out by companies that intend to offset their greenhouse gas emissions in the Municipality of Rio de Janeiro.

Tax incentives in the port area

Municipal Law No. 8,794/2025 established tax incentives for residential developments in the Special Urban Interest Area (AEIU) of Rio’s Port. Among the measures, the exemption of ITBI on apartment purchases stands out, reducing costs and encouraging the occupation of the port area.

The initiative strengthens the urban redevelopment strategy and attracts new real estate investments to Porto Maravilha, which now also includes developments located in São Cristóvão.