apps on smartphone

William Malcolm

US Seeks OECD Agreement On Digital Taxes

US Treasury Secretary Steven Mnuchin called on all countries to suspend their plans to introduce a so-called digital tax. So that the Organization for Economic Cooperation and Development (OECD) can reach an international agreement on the matter. The Czech Republic is planning to introduce a digital tax.

In a letter to the OECD, Mnuchin underscored the United States’ concerns about the digital tax levied on sales, not on profits.

The US government announced additional customs duties on French goods worth $2.4 billion (about $55 billion) in retaliation for a digital tax in France. Washington regards this tax as discrimination against US-based firms.

The French digital tax has a 3% rate. It applies to companies that have revenues in France over € 25 million (roughly CZK 638 million) and over € 750 million worldwide (over CZK 19 billion). Valid retroactively from the beginning of this year.

Last month, the Czech government approved the introduction of a seven percent digital tax for large Internet businesses. According to the Ministry of Finance, a digital tax could bring five billion crowns a year to the state budget. The law will be valid next year if it passes the parliament and is signed by the president.