Canada plans to move forward with its Digital Services Tax on big tech companies after delaying it for talks on a global treaty for taxing multinational companies.
As reported by Reuters, Canada’s federal 2024 budget says the government will move ahead with the tax, which will begin to apply for the 2024 calendar year. Additionally, the first year will cover taxable revenues earned since January 1st, 2022.
The government expects the Digital Services Tax to raise $5.9 billion CAD over five years starting with the fiscal year 2024/25.
Canada previously delayed implementing the tax for two years to allow for negotiations on a global treaty to tax multinational companies to be completed. However, those discussions are dragging and the feds say Canada “cannot afford to wait.”
Notably, the U.S. opposes the plan because it feels the tax unfairly targets American companies.
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Source: Reuters
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