Taxation

Sector-specific taxes are levied on mobile consumers and operators in many countries. These include special communication taxes, such as excise duties on mobile handsets and airtime usage, USF contributions, contributions to technology funds, ad hoc levies and revenue-share levies on mobile operators. These taxes contribute to a high tax burden on the mobile sector that generally exceeds the burden on other sectors.

Taxation policies in relation to the IoT should create incentives for innovation and investment. They should take into account that this innovative industry has a positive impact on economic and social development, creating jobs, increasing productivity and improving the lives of citizens.

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Taxation in Internet of Things – GSMA Industry Position

Governments should reduce or remove mobile-specific taxes because the resulting social impact and long-term positive impact on GDP, and hence tax revenues, will outweigh any short-term contributions to governments’ budgets. Download

How to grow M2M in Brazil: Reforming taxation and enacting forward looking policies

A slide set from Tech polis showing the impact of recent tax policies on M2M in Brazil. Download

Brazilian Government M2M SIM card tax reduction

In late 2014, the Brazilian government passed a regulation significantly reducing the SIM card tax on M2M devices, providing a stimulus for operators to develop services such as smart metering, car tracking or remote health monitoring. The decree cuts two fees in the ...