The Spanish Government will proceed with a proposal to introduce a digital services tax along similar lines to the European Commission's proposed interim digital tax.

Under the measure, a three percent tax will be imposed on certain digital services provided by companies with global sales exceeding EUR750m (USD867m) and sales of more than EUR3m within Spain. Revenue from the selling of online advertising, digital intermediary and brokerage services, and personal data would be included in the scope of the law.

The proposal has been included in the budget agreement negotiated by the minority socialist Government and the Podemos party.

Also included in the Budget is a previously announced measure intended to ensure that companies pay an effective corporate tax rate of no lower than 15 percent by restricting the use of deductions.

In addition, the Budget includes a proposal to reduce the rate of value-added tax on feminine hygiene products from 10 percent to four percent.

by Ulrika Lomas, Tax-News.com, Brussels