On 4 May 2020, Mr. João Maia, a Brazilian politician and Brazilian Congressman, proposed a Bill no. 2358/2020 to introduce the digital service tax (DST) and was submitted it in the Chamber of Deputies. The proposed tax, known as the contribution for intervention in the economic domain – digital (CIDE-Digital), reflects the move towards a digital services tax many European countries have taken in recent months. If Both Chamber of Deputies and Senate approve the bill, then the bill would enter into force on the date of its publication in the Official Gazette. This Bill covers:
- Large digital groups whose annual worldwide gross revenue and local gross revenue more than BRL 3 billion and BRL 100 million, respectively will be liable to CIDE-Digital.
- The Bill also propose to identify the taxpayers from whom the required revenues need to collect.
- Under the CIDE-Digital, the taxpayers would include legal entities, domiciled in Brazil or abroad.
- Again, the Bill proposes the digital service tax rate from 1% to 5% on the basis of amount of gross revenue from taxable supplies.
