The Czech government has approved plans for a 7 percent digital tax on advertising by global internet giants like Google and Facebook, the Finance Ministry said.
The proposed tax, which still must make it past lawmakers in parliament, covers revenue gained from targeted advertising, providing digital market places, and user data sales, similar to the proposal by the European Parliament last year. It will cover only services provided to Czech users.
The tax would apply to companies with global revenue over EUR 750 million annually, at least USD 4.32 million turnover in the Czech market and more than 200,000 user accounts.
The Finance Ministry said it estimated the tax would be temporary until a global deal could be reached, as under discussion by the OECD members. The Czech government expects its own tax would raise CZK 2.1 billion in 2020 if it takes effect from June and about CZK 5 billion annually in following years.
