UK Publishes Draft Digital Services Tax Legislation

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The UK government has published draft legislation confirming its intention for a 2% digital services tax on the revenues earned from where the parent group’s worldwide revenues attributable to relevant business activities exceeding GBP £500 million, and more than GBP £25 million of such revenue is attributable to UK users made up as the following entities:

Social media platforms.
Search engines.
Online UK marketplaces.
If all goes to plan, the tax is projected to be implemented from next April 2020, and if finalised will apply to profits associated with UK users rather than UK companies or permanent establishments only.