The UK DST in its current form may well breach the UK’s obligations under double tax treaties, international trade law, or both, write Rupert Shiers and Jonathan T Stoel (Hogan Lovells).
On 9 October the OECD published a proposal aimed at reaching a consensus-based approach under which affected multinationals would pay additional tax where they have significant customer-facing activities and generate their profits. As part of this the OECD warns of the negative consequences of countries acting unilaterally in the interim.
The UK is one of the countries that has published unilateral proposals: draft legislation was published in July 2019 for a new UK tax to be known as the digital services tax (UK DST).
Unlike the normal charge to corporation tax on income the UK DST can apply to a taxpayer that is neither UK tax resident nor has a UK...
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The UK DST in its current form may well breach the UK’s obligations under double tax treaties, international trade law, or both, write Rupert Shiers and Jonathan T Stoel (Hogan Lovells).
On 9 October the OECD published a proposal aimed at reaching a consensus-based approach under which affected multinationals would pay additional tax where they have significant customer-facing activities and generate their profits. As part of this the OECD warns of the negative consequences of countries acting unilaterally in the interim.
The UK is one of the countries that has published unilateral proposals: draft legislation was published in July 2019 for a new UK tax to be known as the digital services tax (UK DST).
Unlike the normal charge to corporation tax on income the UK DST can apply to a taxpayer that is neither UK tax resident nor has a UK...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
