Internet giants don't pay taxes in our country to an extent that would match their profits, which is unfair to other companies in the Czech Republic that pay taxes. Negotiations about digital taxes between EU and OECD will take some time and there is still no international solution to taxation of global Internet giants, so the Czech government approved a proposal to impose a 7% digital service tax on large technology companies. The proposal, would apply to companies with global income exceeding 750 million euros and domestic income over 100 million Czech koruna. The Czech Republic is following the example of Austria, which introduced 5% digital tax for internet giants. The tax could apply to companies for part of 2020.

Finance Ministry expected to add between 2 billion to 6 billion crowns to the state budget.