The Czech Ministry of Finance, Alena Schillerová, is reportedly considering a delay in the introduction of the country's digital services tax (DST), as well as a reduction in the proposed rate from 7% to 5%. Legislation for the DST, which was introduced in January 2020, is currently pending before the Czech parliament.
As provided in the draft submitted in parliament, the Czech DST would be levied at a rate of 7% on turnover from services provided in the Czech Republic by companies with a global turnover of EUR 750 million and turnover in the Czech Republic of at least CZK 100 million, with an EU activity threshold providing that the DST will not apply for companies whose share of revenue from taxable services in the EU does not exceed 10% of total revenue in the EU. The scope of the DST includes turnover from digital advertising, the sale of user data, and intermediation services provided through multilateral digital interfaces.
Previously, it was expected that the DST would be approved and implemented as per the draft by mid-2020. The possible delay and reduction of the rate are to be discussed in parliament in June 2020. Details of any changes will be published once available.
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