UK will tax 2% of Facebook and Google’s revenue from UK users

Britain’s
Chancellor Philip Hammond.

Reuters/Peter
Nicholls

• The UK government plans to introduce a digital services
  tax in April 2020, which will involve Silicon Valley’s tech
  giants paying 2% on the revenue they make from UK
  users.
• This is radical because it’s the first time the UK has
  specifically targeted the US tech firms for the low tax they
  pay.
• Up until now, the tech giants have always paid a small
  amount of corporation tax on the profits they report in the UK
  and not revenue.
• UK officials haven’t precisely outlined how this tax
  will work yet.

The UK government announced a drastic change to the way Silicon
Valley tech giants such as Facebook, Amazon, and Google are taxed
in the UK.

Chancellor Philip Hammond said the UK would tax 2% of the revenue
that tech giants make from UK users, in what he said would raise
up to £400 million ($512 million) a year for the nation’s coffers
from 2020.

This is a developing story…