UK Unlikely to Back Down from Digital Services Tax Amid US Threats

The UK Treasury plans to continue its digital services tax on tech companies despite President Donald Trump’s threat to impose tariffs on nations that enforce the levy.

The tax helps the UK raise up to £1 billion ($1.3 billion) a year, ensuring fair taxation of multinational groups generating value from their UK activities, a person familiar with the Treasury’s thinking told Bloomberg Tax, requesting anonymity.

The Treasury’s position is that the tax applies to businesses, not countries, and is agnostic to where a business is located, the source said. The UK plans to engage with ...