The Lead Story
Brazil Hits “Publish” on a 7% Digital Tax for Big Tech
The Big Picture: Brazil’s lower house just got a hefty new upload: Complementary Law Project No. 157/2025, a proposal to slap a 7% Digital Social Contribution (CSD) on the gross revenue that foreign-owned digital platforms earn from Brazilian users. The move lands while the OECD’s long-running Pillar One talks stall and Washington’s trade rhetoric heats up.
The Details: The bill, formally submitted to the Chamber of Deputies on 29 July, would target companies booking more than BRL 500 million (≈ USD 90.9 million) in global revenue and prohibits passing the cost on to Brazilian consumers, according to Vatcalc. Sponsors say the levy compensates users for the exploitation of their data and advertising attention. Earlier attempts at a Brazilian DST fizzled amid U.S. pressure and fears of retaliatory tariffs—concerns that have only grown louder as former President Trump’s trade team threatens new duties on countries that tax American tech giants.
Why It Matters: While the OECD’s Pillar One blueprint focuses on reallocating profits, Brazil’s plan grabs a slice of gross revenue. That mismatch could spark double-taxation disputes if—and it’s a big if—Pillar One ever gets over the finish line. “A unilateral approach could collide with any future multilateral deal,” Vatcalc warns.
Around the Tax World
- Republicans v. the OECD. A group of U.S. House Republicans has introduced a bill to yank U.S. funding from the OECD, frustrated with the bloc’s global minimum-tax agenda (Financial Times).
- Tariff Tug-of-War. President Trump is defending a fresh wave of import duties—even after a U.S. trade court questioned his authority—arguing they’ll “boost American manufacturing,” BBC notes. Over in Brussels, officials are prepping retaliation if Washington sticks with a baseline 10% levy, according to live updates from Yahoo Finance.
- Uruguay Eyes Crypto Clarity. Montevideo is advancing a crypto framework that will license virtual-asset service providers and impose tax due-diligence rules mirroring OECD guidance, AInvest reports.
By the Numbers
Prime Number: 7 — the percentage Brazil wants to skim off Big Tech’s Brazilian sales. Lawmakers say the flat rate keeps things simple; multinationals call it simply expensive.
Looking Ahead
All eyes are on Brazil’s Chamber of Deputies, where the CSD faces committee debate when lawmakers return from recess in August. Across the Atlantic, expect fireworks as U.S. conservatives push their anti-OECD bill through a divided Congress.
Prepared by MyTax - mytax.com.ng