UK will implement a new tax on multinational technology companies

The UK government has announced it will implement a new tax on the revenues of multinational technology companies, becoming the biggest economy to introduce a levy aimed specifically at US groups like Apple and Amazon. The 2 per cent tax, which would come into effect in 2020 unless an agreement is reached on an international “tech tax” regime, would be imposed on profitable companies that generate more than £500 million a year globally… Big tech groups have benefited from corporate tax rules that target profits based on where a company develops intellectual property or has a physical presence. This means tech groups often pay little tax in EU markets where they sell their products and services. The British levy will only apply to UK sales and is set to raise more than £400 million a year. Spain is the only other big economy to bring in such a scheme. London’s decision comes as separate EU plans for a tech levy attract mounting opposition from businesses. European technology heavyweights, including Spotify, and Angry Birds maker Rovio, have come out against Brussels’ plans, arguing it will unfairly punish EU companies.

Madison Marriage and Mehreen Khan