UK Government to Consult on Diverted Profits Tax, Transfer Pricing, and Permanent Establishment Reform

The UK Government announced a package of technical tax policy proposals on 27 April 2023 that supports its ambition to simplify and modernize the tax system, tackle non-compliance, make the tax system fairer for taxpayers, and make the customs system work better for traders. Among other things, this includes that a consultation will be published in May 2023 on simplifying and updating the following legislation:

• Diverted Profits Tax (DPT) (increased rate on diverted UK profits);
• Transfer pri…