UK secures financial services exemption from new global tax rules – FT – .

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UK secures financial services exemption from new global tax rules – FT – .


LONDON, June 30 (Reuters) – Britain is set to secure a financial services exemption from a new global tax system that was agreed by the Group of Seven economies to squeeze more money from multinationals like Google, the Financial Times reported on Wednesday.

Reuters reported earlier this month that UK Finance Minister Rishi Sunak was pushing for financial services companies to be exempted to help protect London’s biggest banks from paying more taxes. Read more

The FT said the Organization for Economic Co-operation and Development, which leads reform of global corporate tax rules, had accepted Britain’s case on an exclusion.

The new global tax rules are designed to force companies to pay more taxes in the countries where they operate. Banks typically pay taxes locally on profits made in different jurisdictions, the OECD said in a document in 2020.

As part of the new deal, Britain will also remove its digital services tax. The FT said this would likely happen in a phased process. A spokesperson for the UK Treasury declined to comment.

Reporting by Kate Holton; Editing by Giles Elgood

Our Standards: Thomson Reuters Trust Principles.

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