Estonia plans to start taxing paid streaming platforms following EU directive
Estonia is to implement a European Union directive which taxes major corporate streaming sites like Netflix and Disney, using the proceeds to support locally produced content, particularly in languages other than English.
The Reform-Eesti 200 coalition agreement includes a solution for taxing international platforms, to be ready by the third quarter of this year.
The EU's Audiovisual Services Directive has already been adopted in Estonia, but its implementation still lies in the future.
The levy would initially be collected only from paid platforms. Legitimate free streaming platforms such as ERR's Jupiter service would be exempt from the tax.
Broadly speaking, paid platforms will have two options to choose from under the new tax regime, Karlo Funk, audiovisual and digital culture adviser at the Ministry of Culture said.
"Either they choose to invest in local production, or a tax will be imposed on the streaming platform based on the local market, a percentage of the revenue brought in by users, or a combination of both measures," Funk told "Aktuaalne kaamera."
Edith Sepp, head of the Estonian Film Institute, said: "Article 13, which allows this levy to be imposed, was not enacted at the time. Today we are working on amending the Audiovisual Media Services Directive; it is on its way to the Riigikogu, and the parliament must adopt the amendment," said
While the precise sums likely to be involved cannot be stated at this time, Funk said: "We can estimate, based on a media analysis, that the amount could be between €700,000 and €1.2 million, but this is added value, it doesn't mean cash — it could also mean investment."
Sepp meanwhile said that the impact would not be far-reaching.
"In Estonia, the financial impact won't be that large, but it will also be a matter of principle that if you show content to locals — we're talking about Disney, Netflix, the bigger platforms — then you should also consider conserving Estonian-language content. This is because the support from this levy would go directly into the production of Estonian-language content," said Sepp.
The European Audiovisual Media Services Directive allows the imposition of levies or obligations on streaming platforms in order to support the production and distribution of European films and series.
As of now 17 EU states are taxing the larger paid streaming platforms for the purpose of supporting local film production.
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Editor: Marko Tooming, Andrew Whyte
Source: 'Akutaalne kaamera'
