Czech digital tax aimed at global, not local, internet companies -report

PRAGUE, June 11 (Reuters) - The Czech Finance Ministry’s new digital tax will apply to internet companies with global turnover of more than 750 million euros ($56.59 million) and taxable income in the Czech Republic of more than 50 million crowns ($2.21 million) in a year, daily Lidove Noviny reported on Tuesday.

Lidove Noviny reported, citing ministry plans, the tax would not apply to domestic firms.

The Czech government is seeking to put in place the digital tax, aimed at global giants like Google, in the middle of next year with a rate of 7% as it seeks to boost budget income as economic growth cools.

“It is just for companies to pay taxes where they create their profits,” the paper quoted Finance Minister Alena Schillerova as saying.

There is still disagreement among European Union members over how to implement a so-called “GAFA tax” - named after Google, Apple, Facebook and Amazon - to ensure they pay a fair share of taxes on their massive business operations in Europe.

The Czech rate would be higher than 5% announced by Austria.

Czech ministry estimates see the digital tax raising 5 billion crowns annually for the budget.

$1 = 22.6480 Czech crowns $1 = 0.8836 euros Reporting by Jason Hovet, editing by Louise Heavens