- Chancellor Philip Hammond will introduce a digital services tax from April 2020 following a consultation and says it will target “established tech giants” instead of startups.
- Both the OECD and the European Commission are trying to reach a consensus on a digital tax on social media platforms, online marketplaces, and search engines. But Hammond calls the progress “painfully slow.”
- Earlier this year, the Treasury said a levy on digital companies’ UK sales would only be in place until an international deal was reached. The OECD will provide an update next year with plans for a final report in 2020.
- The UK’s rate 2% tax would be below the 3% rate Europe wants to introduce.
- Percentage of total revenue from the UK, according to FactSet data: Facebook (FB -1%), 2.6%; Netflix (NFLX -3.6%), 2.4%; Apple (AAPL -0.1%), 2.1%; Alphabet (NASDAQ:GOOGL) (GOOG -2.4%), 1.8%. (Source: StreetAccount.)
- Previously: Tech giants may face billions in new taxes (Oct. 29)
- Now read: Apple Makes A Strong Move
Original article