Czechs approve digital tax on internet firms like Facebook, Google, Amazon

The Czech government has approved a 7 percent digital tax on large internet businesses such as Facebook, Google, Amazon and Apple. According to Ministry of Finance estimates, the new tax would bring in 5 billion crowns of revenue a year.

The Ministry of Finance proposes introducing a so-called DST model of digital tax as proposed earlier by the European Commission.

Subject to the new tax would be internet companies with a global turnover of over EUR 750 million (CZK 19.1 billion) and annual turnover in the Czech Republic of over CZK 100 million.

Some digital economy platforms such as Airbnb and Uber that allow users to provide services and goods to each other for a transaction fee would also be subject to the tax.