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Brazil: Introduction of bill including 3 percent digital service tax for certain companies

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Description

Introduction of bill including 3 percent digital service tax for certain companies

Proposed Projeto de Lei Complementar 218/20 introduces a digital service tax. Subjected services include online advertising, operating a platform with the purpose of user interaction, selling of goods, and provision of services, and transfer of data. The tax rate is set at 3%. A threshold of BRL 4.5 billion globally applies.

Original source

Scope

Policy Area
Taxation
Policy Instrument
Direct taxes including Digital Service Taxes
Regulated Economic Activity
cross-cutting
Implementation Level
national
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

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2020-08-19
under deliberation

Proposed Projeto de Lei Complementar 218/20 introduces a digital service tax. Subjected services in…

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
digital files: transfer (any destination)
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

digital files: transfer (any destination)

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

service (any type): marketing (any form)

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