May 22, 2024

Canada wants to introduce a digital services tax on global tech companies from 2024

Canada will move forward with the introduction of a digital services tax for big tech companies that will raise C$5.9 billion ($4.3 billion) over five years starting in the 2024-25 fiscal year, the federal budget showed on Tuesday.

Canada, which wants to take on the challenge of taxing digital giants such as Google parent Alphabet and Amazon.com, has hesitated for two years to conclude negotiations on a global treaty to tax multinationals. Enables companies. But the negotiations are still dragging.

Washington rejects the plan on the grounds that it unfairly excludes US companies.

“Because of international delays in implementing the multilateral agreement, Canada cannot wait to act,” the Treasury Department said in its annual budget statement.

“The government is moving ahead with a long-term plan to introduce a digital service tax.” The tax is applicable from the calendar year 2024 for the first year comprising taxable income from January 1, 2022.

($1 = 1.3820 Canadian dollars)

(Reporting by David Lungren, Editing by Denny Thomas)

((Reuters Ottawa Bureau; david.ljunggren@tr,com))

Tags: Canada Home/Digital

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