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Digital Services Taxes DST – global tracker

Digital Services Taxes (DST) making a comeback as OECD Pillar 1 in danger of missing 2023 impementation? DST’s are a new class of taxes being implemented to tackle the perceived unfairness of non-resident digital companies to sell across borders without being liable to local corporate income taxes. They are typically a percentage charge of turnover from in-scope activities, with a sales threshold based on in-country and global income.

The OECD’s Inclusive Framework proposal has been adopted by 137 countries, to reform and harmonise the tax treatment of foreign digital income and minimum tax rates. This includes ‘Pillar 1’ which would relocate the right to tax to the country of consumption and therefore eliminate the need for DST’s. Note: VAT on digital services is not included.

Europe Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
EU Digital Levy Paused 3% EU €50m €750m Marketplaces; advertising
Austria Jan 2020 5% €25m €750m Advertising
Belgium Paused 3% €5m €750m Advertising; Intermediation; Data Transmission
Czech Proposed 5% CZK 100m €750m Advertising; digital services
Denmark Jan 2024 6% Streaming video
France Jan 2019 3% €25m €750m Digital interface; advertising; user data
Greece Jul 2019 Nil n/a Tourist accomodation
Hungary Jul 2019 0% to Dec 2022; then 7.5% HUF 100m n/a Media content; Advertising
Italy Jan 2020 3% €5.5m €750m Advertising; digital interfaces; user data
Latvia Paused 3% €750m Digital interface; advertising; user data
Norway Paused Subject to progress on OECD plans
Poland Jul 2020 1.5% Streaming media and Audiovisual media service and audiovisual commercial communication
Poland 2 Proposed 7% Digital services
Portugal Feb 2021 1.5% Video-sharing platforms and subscription TV streaming (1%)
Portugal 2 Proposed 7% Streaming video services
Slovenia Proposed Advertising; user data
Spain Jan 2021 3% €3m €750m Advertising; user data
Turkey Mar 2020 7.5% TRY 20m €750m Advertising; Content; social media
UK Apr 2020 2% UK £25m £500m Marketplaces; Social media; search engines

Asia Pacific Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
India Jun 2016 6% Rs 2cores n/a Advertising
India Apr 2020 2% INR 20m n/a Goods and digital services sellers and facilitating marketplaces
Indonesia Mar 2020 TBC E-commerce
Laos Feb 2024 TBC Streaming; ad's; travel & hotel online
Nepal Jul 2022 2% Electronic & digital services
New Zealand Proposed 2-3% NZ$3.5m NZ$1.1bn Social media; Content sharing; Search engine; user data; Intermediation;
Pakistan Sep 2021 2% Nil Nil Withholding tax on marketplaces
Kyrgystan Jan 2022 2% Nil Nil Tax on digital services B2B and B2C
Sierra Leone Jan 2021 1.5% Digital and electronic services
Vietnam 2021 TBC 1.5% Ecommerce tax on marketplace revenues

Americas Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
Argentina Dec 2020 5%, 10%, 15% Online gambling
Brazil - 1 Proposed 1-5% BRL 100m BRL 3bn Advertising; user data; interfaces;
Brazil - 2 Proposed 3% on COFINS BRL 78m $240m Advertising; platform services for selling goods and services
Brazil - 3 Proposed 3% BRL 4.5bn Advertising; platform interaction services; data
Brazil - 4 Proposed 3% - 10% BRL 100m Media; apps; gaming; gambling (10%); software
Brazil - 5 Proposed 3% Advertising; user data; payment platforms; media
Canada Jan 2024 3% CAD 20m €750m Advertising, online marketplaces, social media and the sale/licensing of user data.
Costa Rica Nov 2019 Tourist accommodation rentals
Paraguay Jan 2021 4.5% Non-resident: media; gaming; data processing; advertising; gambling; software
Uruguay Jan 2018 12% Digital services Non-residents

Africa & Middle East Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
Israel Proposed 3%-5% Digital interface; advertising; user data
Kenya Jan 2021 1.5% n/a nil Digital interfaces services, including most non-resident e-services
Nigeria Jan 2022 6% NGN 25m Content; customer data; goods & services; and intermediary services
South Africa Proposed
Tanzania Jan 2022 2% Digital or electronic services
Tunisia Jan 2020 3% Apps; digital services (non-resident only)
Zimbabwe Jan 2020 5% Digital and ecommerce

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