Saturday, 21 March 2015

UK 2015 budget provides more information on new diverted profits tax

UK Chancellor George Osborne delivered his final budget on March 17, 2015, in advance of the May 2015 national elections.

Osborne highlighted current growth across the UK economy but included few 'tax giveaways.' The UK government believes that law changes since 2002 have made the United Kingdom the most competitive tax system in the G20.

The budget's most significant measure, aimed at tackling perceived tax avoidance by multinationals, is the new diverted profits tax (DPT), which will apply beginning April 1, 2015. Final legislation - part of the Finance Bill 2015 - will be released on March 24, 2015. The legislation will be enacted before March 31, 2015, and is expected to clarify a number of uncertainties in the December 2014 draft legislation. We do not expect fundamental changes to the DPT's intended scope.

Source & more info: PwC