The Czech government has decided to propose a new law to the country’s parliament introducing a 7% digital tax.
According to a government statement, it would be paid by large companies that do not have a registered office or branch in the Czech Republic but do business through the digital economy.
Targeted advertising campaigns, the use of versatile digital interface and the sale of user data would become taxed digital services by 2020.
The tax would be paid by companies with global revenues exceeding €750 million, or which achieve such revenues themselves, collecting at least CZK100 million (€3.9 million) for taxable services in the Czech Republic.
The Ministry of Finance expects the Treasury to receive CZK2.4-6.6 billion a year from the new digital tax, which will be limited to 2024 as by then the government expects a global agreement on taxation to be reached at the EU or OECD level.