Brady Statement on U.K. Tax on Digital Services

October 31, 2018 — Press Releases   

Washington, D.C. – Today, House Ways and Means Committee Chairman Kevin Brady (R-TX) released the following statement after the United Kingdom announced plans to introduce a new tax on digital services:

“The United Kingdom’s introduction of a new tax targeting cross-border digital services – which mirrors a similar proposal under consideration in the European Union – is troubling.  Singling out a key global industry dominated by American companies for taxation that is inconsistent with international norms is a blatant revenue grab. 

“The ongoing global dialogue on the digital economy through the OECD framework should not be pre-empted by unilateral actions that will result in double taxation. If the United Kingdom or other countries proceed, that will prompt a review of our U.S. tax and regulatory approach to determine what actions are appropriate to ensure a level playing field in global markets.”