The UK is committed to enacting a DST, notwithstanding the international reform project being undertaken by the Organisation for Economic Co-operation and Development. It has now published draft legislation as part of the draft Finance Bill 2019-20 confirming its intention for a 2% tax on the revenues earned from 1 April 2020 that a group derives from providing a social media platform, search engine or an online marketplace to UK users, if the group exceeds designated thresholds. This tax can be claimed as an allowable expense against UK corporation tax, but is not creditable against UK tax. The tax applies to revenues linked to UK users and not just UK companies or permanent establishments.
Source EY
