International Tax Poker: The United Kingdom’s Digital Services Tax Proposal

    View Authors November 2018
    Tax authorities around the world are grappling with novel and important issues in how the digitalized economy is taxed. The tax policy choices they make will affect both where businesses pay tax and how much tax they pay. This international tax trend will affect how nearly every business interacts with customers, structures supply chains and plans future transactions.

    In its Autumn Budget Announcement the UK has, somewhat surprisingly, launched one of the first salvos in this global skirmish – the Digital Services Tax (DST) set to apply from 2020 onward. The DST will apply to certain profitable digital businesses with annual global revenue of more than £500 million. The DST rate will be 2%, which will be charged on the revenues of the affected businesses.

    We have assembled a global team of tax and policy experts ready to help you with the DST and global digital tax issues now. The recent addition of Jeff VanderWolk, fresh off a tour of duty with the OECD’s global tax team, wonderfully complements our existing team of technical tax and tax policy experts. Our team would be happy to discuss this and other evolving tax issues with you.