UK seeks feedback on design of new digital services tax

The UK today launched a consultation seeking feedback on the design of its new digital services tax, announced in its October 29 budget.

 

In its budget, the government said it would impose a 2 percent tax beginning 2020 on the revenues of specific digital businesses. A safe harbor would prevent loss-making companies from paying the tax.

 

Feedback on the government’s proposal, as outlined in today’s release, is sought by February 28.

 

MNE Tax will publish an article written by a UK tax expert exploring this new proposal in depth next week.

 

 

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