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Czech Republic: Proposal for digital services tax

Czech Republic: Proposal for digital services tax

The Czech Ministry of Finance has introduced its plans for a new digital services tax.

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The scope of the proposed digital services tax in the Czech Republic resembles that of the proposed digital services tax currently being discussed in the European Union. The Czech digital services tax is proposed to be imposed at a rate of 7% on revenues from:

  • Targeted advertising on a digital interface
  • Use of multilateral digital interfaces
  • Sales of data collected about users of digital services

The digital services tax would apply to these services when provided in the Czech Republic by companies with a global turnover of €750 million or more, and the proposed tax would also be based on a minimum turnover of these companies in the Czech Republic (however, that threshold has yet to be established).

A first draft of the legislation is expected by the end of May 2019, and depending on the legislative process, the legislation (if enacted) could have an effective date at some point in the middle of 2020.

 

For more information, contact a tax professional with the KPMG member firm in the Czech Republic:

Petr Toman | +420 222 123 602 | ptoman@kpmg.cz

Vaclav Banka | +420 222 123 505 | vbanka@kpmg.cz

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