Finance
Britain's digital tax on 'Big Tech' not impacted by trade deal
Published by Global Banking & Finance Review®
Posted on May 8, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 8, 2025
1 min readLast updated: January 24, 2026
Britain's digital tax on U.S. tech giants, including Amazon and Google, remains unchanged despite a new trade deal with the US, focusing on reducing export paperwork.
LONDON (Reuters) -Britain's digital services tax, imposed on U.S. companies like Amazon, Google and Meta, will not be changed under the terms of the trade deal agreed between the two countries on Thursday, the British government said.
U.S. President Donald Trump has been strongly critical of digital services taxes, which have been introduced by around 20 countries, saying they were "designed to plunder American companies".
Britain's tax is levied at 2% of the revenue earned by big tech companies in the country.
"The Digital Services Tax remains unchanged as part of today's deal," the British government said in a statement.
"Instead the two nations have agreed to work on a digital trade deal that will strip back paperwork for British firms trying to export to the US - opening the UK up to a huge market that will put rocket boosters on the UK economy."
(Reporting by Paul Sandle; editing by Michael Holden)
The article discusses Britain's digital tax on U.S. tech companies and its status following a trade deal with the US.
The UK digital services tax is levied at 2% of the revenue earned by large tech companies operating in the UK.
The trade deal includes efforts to reduce paperwork for UK firms exporting to the US, but does not change the digital services tax.
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