A Plain English Guide to the UK Diverted Profits Tax (1)

Webinars | Europe

A guide to assessing how the new UK Diverted Profit Tax, effective 1 April 2015, will apply to your UK and international operations and your UK reporting obligations.

The UK’s Diverted Profit Tax (DPT) or ’Google Tax’ as often dubbed by the British media, is a new tax effective 1 April 2015, introduced by the Chancellor as part of Finance (No.2) Bill 2015. The new charge (levied at 25%) is purported to be aimed at tackling aggressive international tax planning techniques used by large multinational corporations, in response to the view that the rafts of existing UK tax legislation do not go far enough in protecting the UK’s tax base. However, the reality is such that the rules are likely to have far wider application.  

TPA Global, together with Milestone International Tax Partners LLP, will provide you with a high level overview of the new rules and use common multinational case-studies to show you just how extensively the new rules are likely to apply.
The webinar will consider the following:

  • Elaborate on the two key charging provisions of the UK DPT;
  • Application of the “80% payment test;
  • The “Insufficient Economic Substance Condition”;
  • The reporting obligations under DPT (even if it is likely that no DPT charge would arise); and
  • How the DPT may be calculated.

At the end of the webinar, you will:

  • Understand the concept underlying the UK diverted profit tax;
  • Be able to make an initial assessment as to whether your UK activities have a risk of falling within scope of the UK diverted profit tax regulations;
  • Understand your notification and reporting obligations; and
  • Be clear of the timeframe within which you have to take action.

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