The proposal would introduce a Digital Services Tax (DST) to apply from 1 July 2025 with the following characteristics:

Liable Entities and Assessable Revenues:

The DST would apply to digital services companies with total worldwide revenue from all sources exceeding €750m (‘liable entities’) that receive revenue from the following specified digital services:

• online marketplace services
• online advertising services
• social media services
• user data revenue
• cloud computing services.

Tax Rate:

The DST be levied on Australian gross revenue for liable entities from specified digital services in excess of AUD $20 million at a rate of 3.0%.