UK Digital Services Tax

The UK Digital Services Tax is a tax introduced in April 2020 that targets large multinational companies providing digital services in the UK. It primarily affects tech giants that earn significant revenue from activities like online advertising and social media, where they might not pay enough tax based on their profits. The tax is set at 2% on revenues generated from UK users, ensuring these companies contribute fairly to the UK economy. The goal is to create a level playing field for UK businesses competing with larger foreign digital firms.