UK government plans 'Digital Services Tax' applied against Apple and other tech giants

Discussion in 'Industry News' started by Calliers, Oct 29, 2018.

  1. Calliers

    Calliers HH's MC Staff Member

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    Announced by UK chancellor Philip Hammond at the House of Commons on Monday, the Digital Service Tax is being billed as a way for big firms to pay their fair share, or as the "Budget 2018" report advises, will "ensure that the amount of tax paid in the UK is reflective of the value they derive from their UK users."

    The tax would apply only to revenues generated from search engines, social media platforms, and online marketplaces, areas that companies such as Apple, Google, Amazon, and others operate within. It will also only apply to firms that generate global revenues in excess of 500 million pounds ($640 million) per annum, and would only be applied to the revenue stemming from UK customers.

    The chancellor highlighted that it wasn't a sales tax against goods and services paid for by the users, but was an attempt to force firms to pay more in corporation taxes, something that they are keen to minimize. "It's only right the global giants pay their fair share," suggests Hammond, who expects the tax to generate over 400 million pounds ($512 million) per year in taxes.
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    Source: applieinsider
     

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