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Ireland extends Digital Services Tax deduction jurisdictions

Spain, Austria and Kenya added to list of countries whose DST’s may be deducted against Irish Corporation Tax

Ireland’s Revenue Commissionaires has added three additional states to the list of jurisdictions that Irish resident businesses may claim Digital Services Tax against relevant their Irish taxable income.

Check our DST country implementations tracker.

Country DST’s deductible against Irish DST

The complete list is now:

  1. Austria
  2. France
  3. India (Equalisation Levy)
  4. Italy
  5. Kenya
  6. Spain
  7. Turkey
  8. UK

Irish DST relief pending OECD Pillar1 settlement

The relief is available pending completion of the OECD-led global tax reforms. Under OECD Pillar 1 of these proposals, jurisdiction will be allowed to tax the digital services income of non-resident businesses made in their territories.  Digital services include:

  • Advertising services
  • Exchange of user data
  • Digital intermediation services

This is separate from VAT on digital services.

Under the OECD agreement, 137 members of the Inclusive Framework joined the Statement on the Two-Pillar Solution to Address the tax challenges rising from the digitalisation of the Economy released in October 2021. The Multilateral Convention to implement Pillar One on track for delivery by mid-2023 (11/07/2022)

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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 2% 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


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