The idea was scrapped when it became clear the US would retaliate in some way (to protect their big companies).
> Digital Services Tax is a 2% tax on the revenues derived from UK users of social media platforms, search engines and online marketplaces.
> Digital Services Tax applies to revenue earned from 1 April 2020.
> You need to register for the Digital Services Tax service if your business provides a social media platform, search engine or online marketplace to UK users and these digital services activities generate both:
> global revenues of more than £500 million in a year
> UK revenues of more than £25 million in a year
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It appears to have been implemented...
and then...
https://www.itpro.com/business/policy-legislation/361333/uk-...
> The UK has agreed to transition its Digital Services Tax (DST) to a new global tax system proposed earlier this year, avoiding tariffs the US threatened to levy on the country in response to the policy.
> The DST, announced in 2018 and introduced in April 2020, imposes a 2% tax on tech giants, the majority of which are based in the US.
> The moved prompted criticism from the US government, which in turn threatened tariffs on the UK and other countries that have introduced similar policies.
> However, on 8 October 2021, 136 countries agreed a plan for the new system, known as Pillar One and Pillar Two. In Pillar One, the largest and most profitable multinationals will be required to pay tax in countries where they operate, not just where they have their headquarters. The rules would apply to firms with at least a 10% profit margin and see 25% of any profit above this margin reallocated and then subjected to tax in the countries they operate. This is expected to come into effect in 2023.
> ...
> The US has agreed not to levy tariffs in response to the UK’s previous DST, and the UK will keep the revenue raised from the tax until the Pillar One reforms become operational. Once Pillar One is in effect, companies will be able to use the difference between what they have paid in DST from January 2022, and what they would have paid if Pillar One had been in effect instead, using it as credit against their future corporation tax bill.
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https://www.oecd.org/tax/beps/faqs-two-pillar-solution-to-ad...