Brazil 3% Digital Services Tax proposal

A further turnover tax on digital services, Digital Services Tax, is being considered in Brazil. This would be a 3% levy on advertising and other data services. The model follows similar European Union proposals. Aside from the low-tax rates enjoyed by non-resident digital services providers, Brazil is concerned for falling tax revenues during the COVID crisis from other tax sources.

See Avalara’s global Digital Service Tax tracker to find out what other countries are doing.

The Chamber of Deputies is reviewing the digital levy, Contribuição Social sobre Serviços Digitais, on the following services of resident and non-resident provider:

• Intermediary services between buyers and sellers of goods or digital services;
• Advertising services; and 
• Sale and transmission of user data

The Brazilian Senate is also looking at a COFINS digital services tax for 10.6%.