The UK government today (11 July 2019) published draft legislation for the next Finance Bill. Among the items are proposals for “ensuring large digital companies pay their fair share” under a digital services tax regime.
The Finance Bill was published in draft form today.
As noted in a related release from HM Treasury, one proposal would subject “large digital businesses” to a new digital services tax that would reflect “the value derived from their UK users.” The release continues:
The government has always said that the best solution to the taxation of digital companies is reform of international tax rules, and we continue to work through the OECD and G20 to seek a globally agreed solution. Once that is achieved we will no longer need our own Digital Services Tax. Discussions will continue at next week’s G7 Finance Ministers.
Announced by the government . . . the Digital Services Tax is a targeted, proportionate, and temporary tax that will ensure large digital businesses pay tax that reflects the value derived from their UK users. It will not apply to small businesses or businesses making UK losses – helping to protect start-ups.
Read a July 2019 report prepared by the KPMG member firm in the UK
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