The implications of the UK public vote to leave the European Union (EU) for the UK, the EU, and the rest of the world depend to a substantial extent on the agreed withdrawal terms, as well as negotiations with other countries. There are many misconceptions about how the referendum vote impacts taxes, but it causes no major tax legislative changes directly. However, the market volatility that we have seen since the vote could affect some tax-related issues. In addition, tax policy changes may, in time, result from what takes place. This insight covers some areas of uncertainty that may impact multinational companies (MNCs) as a result of Brexit. See our Tax Policy Bulletin EU and global tax implications of UK public vote to leave the EU for more detailed information.
MNCs should start assessing factors that will be relevant to their tax position on a UK withdrawal from the EU. In most cases, immediate action is not required to prevent negative tax consequences, but MNCs should be fully informed, show awareness, and address any concerns raised by employees, their supply chain, and other stakeholders. The UK government is reviewing the breadth of issues that need to be considered in withdrawal negotiations and consequential UK policy changes. MNCs are encouraged to engage in the process and make known their concerns and preferences regarding tax issues.