UK to scrap Digital Services Tax in favour of G7 tax deal

06/07/2021

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Sabina Weston | ITPRO

The UK will scrap its Digital Services Tax (DST) once the G7’s newly-proposed tax deal is in place, according to the HM Treasury.

The DST, which imposes a 2% tax on tech giants, was first announced in 2018 and has since been the subject of friction between the UK and US, where some of the world’s largest tech companies are based. 

However, on Saturday, Chancellor Rishi Sunak “reaffirmed” that the DST is a “temporary solution” that will be swapped for Pillar One of the G7’s new Global Tax Agreement.

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