- Brazil proposes a 7 percent Digital Services Tax on tech firms
- The proposal is called Digital Social Contribution or CSD
- CSD targets companies using, selling, or transferring services with user data
- It applies to gross revenue from digital media advertising and data sales or transfers
- Exemptions include marketing of goods and services by own suppliers and financial platforms
- Revenue calculations are based on global gross revenue proportional to Brazilian users
- Affects businesses with global revenue over BRL 500 million
- Proposed CSD rate is 7 percent, calculated quarterly
- Taxes aim to fund infrastructure, tech development, training, and a new income transfer instrument called PIX
- 50 percent of collected taxes would be returned to Brazilian users
- CSD is similar to Digital Services Tax in other countries
- Final decision and wording of the proposal are pending
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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