Commentary

D2.807 Digital services tax—deductibility for corporation tax purposes

Corporate tax
Corporate tax | Commentary

D2.807 Digital services tax—deductibility for corporation tax purposes

Corporate tax | Commentary

D2.807 Digital services tax—deductibility for corporation tax purposes

No provision for credit relief exists for digital services tax (DST), so a liability to DST cannot be credited against corporation tax payable. DST is certainly intended to be a further tax levied, and as discussed in D2.804 DST is outside the realm of the bi-lateral double tax treaty network to alleviate double taxation.

There are no provisions within the DST legislation to detail whether the UK DST may be deductible when calculating taxable profits for corporation tax purposes. HMRC guidance suggests that this is a first principles question for any UK tax

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