Is the DST compatible with the UK's international obligations?

The OECD has warned against unilateral measures leading to taxation of the digitalised economy outside the international tax framework. The UK is one country that has proposed such measures: UK digital services tax. Unlike the normal charge to corporation tax on income, this proposed tax could be levied on entities with no taxable UK presence. The UK government's stated view is that the tax is consistent with the UK's international obligations. However, it may well breach both double tax treaties and international trade law. Given the OECD's warning, affected groups should refresh their engagement with HM Treasury and HMRC, raising these concerns in particular.

Languages English
Topics Tax

Already registered? Login here.

 

This website is operated by Hogan Lovells Solutions Limited, whose registered office is at 21 Holborn Viaduct, London, United Kingdom, EC1A 2DY. Hogan Lovells Solutions Limited is a wholly-owned subsidiary of Hogan Lovells International LLP but is not itself a law firm. For further details of Hogan Lovells Solutions Limited and the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses ("Hogan Lovells"), please see our Legal Notices page. © 2021 Hogan Lovells.

Attorney advertising. Prior results do not guarantee a similar outcome.