Friday, September 30, 2022
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UK Government to Phase out Tax on Revenues of Amazon

The government of the United Kingdom is all set for phasing out a tax on the revenues of the different retail giants like the company ‘Amazon’ in the United Kingdom. In the year 2020, the government of the United Kingdom has launched a two percent tax of the digital services on the online market places or retail companies, which had been responsible for costing the treasure 300 million pounds in the financial year of 2020/2021.

This decision had been made in the response to the speculations that, the big multinational technology companies making money in the United Kingdom had been shifting their profits abroad where they can possibly be taxed at the lower rates, but the government if the United Kingdom said, at the time, it is going to be scrapping the tax once the global solution had been in the place.

Earlier this month, under the deal that was agreed by 136 countries, has been expected to come into the effect from the year 2023, which has been the largest and most profitable multinationals are going to be expected for paying a fair share of the taxes in the markets, where the companies are doing business and not just where they are going to have their headquarters.

The new rules are going to be applied to any company which is having a profit margin of more than 10 percent, and a quarter part of any of the profits made more than that margin are going to be reallocated and subjected to the taxes where they are actually operating.