Digital Services Tax (DST)

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

The digital services tax (DST) seeks to match the amount of tax paid in the UK by digital businesses to the value derived from UK users. It applies to groups that provide a digital services activity.

When it was first introdcued, it was anticipated that DST would be repealed in 2023 and replaced by a multilateral tax of a similar nature (Pillar One of the OECD’s proposed reform of the international corporate tax rules). However, the framework for Pillar One is still under consultation at OECD level. See below at ‘DST ― international aspects’ for further details.

For more detail see Simon’s Taxes D2.801.

Overview of DST

A DST of 2% applies to revenues which are attributable to UK users and arise from digital services activities that fall into the following three categories:

•
a social media service
•
an internet search engine
•
an online marketplace

FA 2020, ss 43, 47

These three activities also include any associated online advertising business in relation to the activities. This means a business which facilitates online advertising

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more

��˾��ҹ��