Tech giants to face digital services tax

Tech giants to face digital services tax

Technology giants such as Google and Amazon will be forced to pay tax on the revenue they generate in the UK, under plans announced in the Budget.

Chancellor Philip Hammond said in his speech this afternoon (29 October) that following a consultation, the government will introduce a digital services tax from April 2020 that will be paid by digital services companies that are profitable and generate "at least £500m a year in global revenue".

The tax will target established tech giants that have come under criticism recently for not paying enough tax on the profits they make in the UK.

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Mr Hammond said: "It is important that the tax system works fairly and adapts to changes in the new economy. To reflect the value derived from UK users, the government is introducing a digital services tax, ensuring large multinational businesses make a fair contribution to supporting vital public service."

He said the tax would not be introduced if an appropriate deal can be reached with other countries globally.