Brazil watchdog removes IoT tax hurdles

Brazil watchdog removes IoT tax hurdles

Brazil’s National Telecommunications Agency (Anatel) removed tax-based regulatory hurdles around IoT and M2M applications, a move for the segment to have lower taxes than telecommunications to spur its growth.

In a translated statement, counsellor Vicente Aquino said the reduction in tax burdens for IoT was a “guideline for the success of the entire digital ecosystem that includes such technology in its value chain”.

Anatel defined devices that are eligible to be those that are defined to offer “value added services” based on their ability to communicate, sense, and store data.

The watchdog amended its general Portability Regulation rules to impose portability obligations for accesses exclusively intended for the connection of IoT devices.

In addition, the regulator will include practical examples of telecommunication and value added service for the exploration of M2M and IoT in an orientation booklet on IoT and M2M.

In 2017, the Brazilian IoT market was tipped to be worth between $50 to $200 billion by 2025, according to the government.

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