From April 2020, the Britain will introduce a new 2% digital services tax aimed at tech giants, as announced by the British finance minster, Chancellor of the Exchequer Philip Hammond, during his Autumn 2018 budget presentation in London on 29 October 2018.
The new digital service tax will apply to revenues generated from global tech companies (such as Alphabet, Amazon, Apple, Facebook and Google) where activities are linked to the participation of UK users, subject to a £25 million per annum allowance. Aiming to raise £400 million (US$512 million) a year for the U.K. Government.
The tax will apply only to profitable businesses that generate global revenues from in-scope business activities at least £500 million (US$640 million) a year and not consumer or internet startups. It will include a safe harbour provision that exempts loss-makers and reduces the effective rate of tax on organisations with low profit margins.
Source: Accounting Today, 2 November 2018