Share with your friends

Senate Finance Committee leaders' statement on UK’s digital services tax

Senate Finance Committee statement on UK’s digital tax

U.S. Senate Finance Committee Chairman Chuck Grassley (R-IA) and ranking member Ron Wyden (D-OR) today jointly released a statement regarding the UK’s digital services tax.


Related content

The digital services tax in the UK is to be imposed a rate of 2% on revenue from certain digital income streams connected to UK users, and an effective date of 1 April 2020. The tax is to be calculated based on relevant revenue as recognised in the financial statements and only applies to a global group that exceeds the following thresholds in a 12-month period:

  • £500 million of worldwide revenue from digital services activities; and
  • £25 million of these revenues attributable to UK users (UK digital services revenues)

Read TaxNewsFlash

Today’s statement released by the Finance Committee reflects the following:

Unilaterally imposing a discriminatory tax that unfairly targets U.S. businesses damages efforts to achieve a multilateral solution and unnecessarily complicates the path forward for a U.S.-U.K. trade deal…. In the course of its ongoing investigation under Section 301 of the 1974 Trade Act, the United States Trade Representative should explore all available options to respond appropriately. The U.K should reconsider this punitive action against its ally.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal