Is the legislative process of implementing the digital services tax finally coming to an end?

Almost three months have passed since the last development in the legislative process of implementing the digital services tax. On 10 June 2020, the parliamentary Committee on the Budget released a resolution; in it, the Committee recommends that the Chamber of Deputies pass the bill in the second hearing, without comments and in the scope of the motion to amend, which reduces the rate of the digital services tax from 7% to 5%.

Consideration of the Parliamentary Document No. 658 in the second reading is included in the agenda of the 58th meeting of the Chamber of Deputies, which was opened on 15 September 2020.

Note that the bill still assumes that the Act will take effect on 1 January 2021; the same date is expected by the Financial Administration of the Czech Republic as well, which is currently preparing an official form for filing a tax return of the digital services tax, together with instruction for its completion.

Whether the legislative process will move towards the expected effective date of the new tax liability will likely become clear after the 58th meeting. We will inform you of the result. Currently, however, it is clear that if the new tax were to come into effect on 1 January 2021, companies would have less and less time each day to get ready for the obligations stemming from its introduction.

Digital Services Tax Direct Taxes dReport newsletter

Upcoming events

Seminars, webcasts, business breakfasts and other events organized by Deloitte.

    Show morearrow-right