Cyprus Mail
Business International

UK agrees to end digital services tax after global tax reform

reuters tech giants

Britain said on Thursday it would phase out its Digital Services Tax on US tech giants such as Google and Facebook once a global reform to corporate taxation takes effect in 2023, averting the threat of tariffs from the United States.

“We have agreed a way forward on how we transition from our Digital Services Tax to the newly agreed global tax system,” finance minister Rishi Sunak said in a statement.

“This agreement means that our Digital Services Tax is protected as we move to 2023, so its revenue can continue to fund vital public services,” he added.

Austria, Britain, France, Italy, Spain and the United States reached an agreement on Thursday on the transition from national digital services taxes contested by Washington to a new global tax deal.

The agreement was reached after nearly 140 countries struck a deal earlier this month on new rules for international corporate taxation.

Britain introduced its digital services tax in April 2020, levied at 2 per cent of the gross revenue large digital companies derived from users in the country.

Britain’s finance ministry said the Digital Services Tax paid after January 2022 will be credited against future British corporation tax bills if it exceeds the amount payable under new global rules agreed via the OECD.

Related Posts

Branch and employee reduction a necessity, Hellenic Bank CEO says

Kyriacos Nicolaou

UK and Russia among Cyprus Airways winter destinations

Kyriacos Nicolaou

Cyprus Business Now

Kyriacos Nicolaou

EU launches €300bn supply chain programme

Kyriacos Nicolaou

Amazon’s trucking ambitions bump up against driver shortage, competition

Reuters News Service

EU seeks to deter economic coercion with new trade defence

Reuters News Service