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Brazil: Introduction of bill including tax of 10.6 percent on certain digital services

Policy overview

Description

Introduction of bill including tax of 10.6 percent on certain digital services

Proposed Projeto de Lei Complementar 131/2020 introduces a digital service tax. Subjected services are operating a platform for communication purposes, sale of goods and provision of services, and online advertising. The tax rate is set at 10.6%. Monthly revenue thresholds of USD 20 million globally and BRL 6.5 million in Brazil apply.

Original source

Scope

Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
online advertising provider, platform intermediary: user-generated content
Implementation Level
national
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

Hide details
2020-05-22
under deliberation

Proposed Projeto de Lei Complementar 131/2020 introduces a digital service tax. Subjected services …

Key regulatory dimensions

Regulated subjects

The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type Private organisation
Economic activity platform intermediary: user-generated content,online advertising provider
Category All

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.
advertisement (any targeting): sale
Regulatory tool
Subordination under digital service tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
electronic messages (any form): hosting (any form)
Regulatory tool
Subordination under digital service tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
service (any type): marketing (any form)
Regulatory tool
Subordination under digital service tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
all goods (physical or digital): marketing (any form)
Regulatory tool
Subordination under digital service tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1

Policy change by business practice

The detailed activities within the scope of this policy or regulatory change.

advertisement (any targeting): sale

electronic messages (any form): hosting (any form)

service (any type): marketing (any form)

all goods (physical or digital): marketing (any form)

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