Quick View: UK Digital Services Tax A Good Start, But More Needed

摘要

The Latest: The UK government has announced a new Digital Services Tax from 2020, targeting internet companies. The tax will raise GBP275mn in the first year, increasing to GBP440mn in 2023- 2024. Implications: The tax attempts to create a fairer system of taxation for digital players, which have been using legal ways to decrease the amount of taxes they pay in certain European markets. As the tax system still relies on physical presence, it means they were paying less than comparable or smaller companies. The UK is with Spain the first market to implement such a tax, as moves are being made on both the European and international level. The UK wants to be seen as an innovator by moving quickly, but it is taking the risk of being alone in a completely globalised digital market, as well as negatively impacting one of its key sectors ahead of Brexit.