The US filed a protest against the Czech proposal of Digital Tax of 7% on digital services. If the new regime is introduced, internet companies with a global turnover of €750 million an annual turnover of €4 million will be imposed with 7% digital tax. It was already known that the introduction of digital tax may result in countermeasures from the US. The measure was proposed because the internet magnate companies do not pay taxes and this turns out to be an unfair situation for other companies.
The proposed regime will bring an expected additional revenue of €198.5 million. It is an alarming situation as the companies will pass on the extra cost to the customers through high sales prices.
The Finance Minister affirmed that the Czech Republic will be supportive enough for finding common international solutions.
