On 19 August 2020, a Bill 218/2020, the social contribution on digital services (CSSD), was submitted and considered by the Chamber of Deputies, which provides the introduction of digital service tax (DST). Previously, 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. Though the scope of application for both of the Bills are same, but they are different. The 3% digital service tax is set under the new draft Bill.
According to the new Bill, digital platform, which have the objective of selling goods or providing services directly between these users, given that one of them is located in Brazil will be subject to digital service tax. Entities having local revenue derived from the display of advertising on a digital platform are also under DST. Both resident and non-resident entities having global revenue more than BRL 4.5 billion will also be subject to DST.
