GlossaryITXWhat is Equalisation Levy?
itx

What is Equalisation Levy?

Equalisation levy is a tax on certain digital transactions with non-residents - 6% on online advertising and a 2% levy on e-commerce supply (the latter withdrawn from August 2024).

Bare Law Reference: Finance Act 2016/2020; Section 10(50).

Detailed Explanation

How it works

The payer deducts and deposits the advertising levy and files an annual statement; income subject to the levy is exempt from income tax under Section 10(50).

Frequently asked questions

What is equalisation levy?

A tax on digital transactions with non-residents - 6% on online ads and (until August 2024) 2% on e-commerce supply.

Is the 2% levy still in force?

No, the 2% e-commerce equalisation levy was withdrawn with effect from 1 August 2024.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • 6% on online advertising; 2% on e-commerce (withdrawn Aug 2024).
  • Payer deducts and deposits the ad levy.
  • Covered income is exempt under Section 10(50).