UK Treasury Agrees to Review Digital Tax Contingency Plans

The UK Treasury agreed to several government committee recommendations to review and provide progress reports on the global tax agreement and its digital services tax, following concerns raised by the Public Accounts Committee.

Treasury will update Parliament on plans to reallocate taxing rights over business profits within three months of reaching a global agreement, which will determine the future of the UK digital services tax.

That tax is an interim measure the government will retire once a deal to reallocate taxing rights is final under Pillar One. UK law requires the DST to be reviewed by 2025.

“There are obvious ...