The UK government has proposed a new Google tax law to clamp down on corporate tax dodgers.
The law is designed to force international firms outline revenue and profits in each country, as well as pay 25% corporate tax. The tax will target only large-scale operations with annual revenues total higher than £250m.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Under the law, companies will be required to inform the treasury on their earned revenue and profit in all countries they operate. This is designed to help ensure that the firms do not cash in on the loopholes to evade UK taxes.
The new tax would be higher than the existing 20% corporation tax rate, as avoidance of UK tax laws is notably dominant in the technology sector.
The government intends to recoup about 25% of profits earned from the companies’ UK operations with the new Google tax law.
The law was announced by chancellor George Osborne in 2014. It is set to be outlined during next week’s budget, and is expected to be implemented by next month.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
