Transfer Pricing Report

Czech Republic Aims to Exclude Marginal Players From Digital Tax

Sept. 5, 2019, 1:02 PM

The Czech Republic refined its draft proposal for a 7% tax on global tech companies to exclude smaller market players.

The latest draft proposal, released Sept. 5 by the Ministry of Finance, would see companies hit with the tax, effective mid-2020, only when turnover for a targeted advertising campaign and provision of user data in the Czech Republic reached at least 5 million Czech koruna ($214,000).

  • The tax was previously defined more broadly, targeting international internet companies whose annual income exceeded 750 million euros ($829 million) globally, and reached at least 50 million Czech koruna locally.
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