Portugal to Tax Digital Devices

August 25, 2014 Taxation in Portugal

Digital Device TaxLISBON – Digital devices in portugal may soon become more expensive, as the government looks for new revenue streams to compensate artists in the country for losses arisign from digital piracy.

Late last week the Cabinet of Portugal approved a proposal to implement a new tax on the sale of numerous digital devices, including hard drives, mobile phones, and tablets, , with the collected revenues to be distributed to artists.

Portugal already has a tax on the sale of blank media such as CDs, DVDs and cassettes, but due to the decline in the use of such technology, the revenues collected from the tax has fallen by 90 percent in the last 8 years alone, only reaching EUR 600 000 last year.

The tax will be based on the storage capacity of the device, with the exact rate to be between EUR 0.05 to EUR 0.25 per gigabyte, with a maximum applicable amount to be set depending on the type of device.

The revenues collected from the tax will be distributed to artist in Portugal via various managing bodies for artists, singers, and other copyright holders.

The tax is expected to raise as much as EUR 20 million per year.

Photo By: Robert Scoble