The UK Government has published draft legislation for the next Finance Bill to deliver on its Budget 2018 commitment to a competitive and fair tax system, including updating tax policies for the digital age by ensuring large digital companies pay their fair share through a Digital Services Tax.

Jesse Norman, Financial Secretary to the Treasury and Paymaster General, said in a press release, “the UK has always sought to lead in finding an international solution to taxing the digital economy. This targeted and proportionate Digital Services Tax is designed to keep our tax system in this area both fair and competitive, pending a longer term international settlement.”

If passed, the move would impose a 2% tax on the digital revenue of large digital companies.

The consultations on the draft legislation will run until 5 September, with measures included in the next Finance Bill. Respondents can contribute here.


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