What is Diverted Profits Tax?

Diverted Profits Tax (DPT) is a UK tax on multinational companies that are found to have artificially shifted profits out of the UK to avoid paying UK tax. The tax was introduced in April 2015 and applies to profits shifted from the UK to low-tax jurisdictions. It applies a rate of 25% on any diverted profits. The Diverted Profits Tax is intended to ensure that multinationals pay their fair share of tax in the UK.