Finance Ministry proposing digital tax for large Internet companies

05-09-2019

The Finance Ministry has sent the government a proposal to introduce a 7% digital tax for large Internet companies such as Facebook and Google as of mid-2020. According to the ministry the tax could bring approximately five billion crowns to state coffers annually.

The proposed tax would concern internet companies with a global turnover of over € 750 million (CZK 19.1 billion), and an annual turnover of at least CZK 50 million for taxable services in the Czech Republic. Some digital economy platforms, such as Airbnb and Uber, would also be taxable.

The ministry’s proposal is based on a draft prepared by the European Commission, which however failed to win approval in the European Parliament.