Tax Benefits

ISS TECH

The Municipal Law 7.000/2021 determined the reduction of the ISS rate from 5% to 2% for companies engaged in activities related to the technology sector and located in Porto Maravalley and the Rio de Janeiro Technology Park on Ilha do Fundão.

Among the sectors benefiting from this are IT services, intermediation of service contracts between individuals exclusively carried out online, research and development, as well as biology, biotechnology, and chemistry.

This measure represents a significant advantage for companies in the sector and contributes to the development of innovation hubs, where it is intended to concentrate investors, technology ventures, and startups, as well as stimulate the generation of new jobs and the local economy, boosting commerce, services, and increasing the occupancy rate of these neighborhoods.

 

DATA CENTER HUB

The State of Rio de Janeiro enacted Law 10.431/24, which provides the fiscal benefit of ICMS deferment for data centers located in the state of Rio de Janeiro in import operations of equipment intended for integration into the permanent assets of the establishment.

In cases of operations not covered by the deferment, the state’s differentiated regime provides full exemption from ICMS on goods or items purchased by the beneficiary and exclusively intended for the construction, expansion, or development of the enterprise, prohibiting the use of the benefit for acquisitions intended for its operation.

This state fiscal benefit is more aligned with the City of Rio de Janeiro's focus on promoting and installing projects related to the technology sector.

Porto Maravalley and the tax incentives from Municipal Law 7.000/2021 create the perfect environment for the creation of a data center hub in the city. Among the projects, the City Hall is assessing the possibility of expanding data processing centers to offshore regions.

Submarine data centers are emerging as a new data storage option, offering advantages such as lower network latency and security, due to their difficulty in accessing.

Therefore, Rio de Janeiro offers a strategic position for the installation of these hubs, as it is one of the arrival points for submarine cables connecting Brazil to other continents.

 

STOCK EXCHANGE

Law 8.467/2024 was approved by the City Council of Rio de Janeiro to reduce the ISS rate from 5% to 2% exclusively for companies performing activities related to stock exchanges and established in the state capital.

The law amends Article 33 of the Tax Code of the Municipality of Rio de Janeiro to include in the list of specific ISS rates services provided by companies that develop activities related to stock exchanges, commodities, and futures, as well as those carried out by companies acting as clearing and settlement houses.

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

The expectation is that the Rio de Janeiro stock exchange will increase ISS revenue in the Municipality, not only due to the revenue increase from the sector but also the attraction of new contributors from various segments, which should generate even more investments for the city and create numerous new local jobs.

 

NEUTRAL ISS

Municipal Law 7.907/23 established the ISS Neutral Program to encourage the reduction of greenhouse gas emissions through tax incentives to key participants in the carbon market.

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

• Carbon credit project development and auditing services;

• Carbon credit registration and certification services;

• Services for providing carbon credit transaction platforms (Green Exchange); and

• Greenhouse gas emissions inventory and auditing services.

Carbon credits can be offset with the ISS to be paid, with a maximum limit of 5% of the total tax due. To benefit from this incentive, taxpayers must follow the eligibility rules specified in the public notice.

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

 

CRYPTO IPTU

Municipal Decree 51.498/2022 established the possibility of paying IPTU with crypto wallets.

The payment will be mediated by Virtual Asset Service Providers/Cryptoasset Exchanges, which will be responsible for converting the crypto assets so that the Municipality receives the full value in reais, without any additional cost to the public coffers.

Companies interested in the operation must, among other obligations, be registered with the Municipality, have a CNPJ, keep their customer records updated in a manner similar to the determinations of the Central Bank for financial institutions, and have a service contract with one of the municipal revenue collection banks.

This measure is part of a broader project that emerged from a working group created by Decree 50.145/2022, which aims to promote the digital currency and blockchain technology market, integrating these innovations into the Rio de Janeiro economy through studies and projects.

 

REVIVER CENTRO

Municipal Law 8.104/2023 created tax benefits to boost the Reviver Centro program, launched in 2021. The amendment provides for the exemption from the Property Transfer Tax (ITBI) for five years for the first buyers after the reconversion or change of use of units located in the Praça XV, Castelo, and Cinelândia regions.

The measure aims to revitalize the area by attracting new residents to neighborhoods with urban infrastructure.