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Canada still prepared to impose digital services tax – finance ministry

12/14/2021
in Finance
Canada still prepared to impose digital services tax – finance ministry
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OTTAWA, Dec 14 (Reuters) – Canada continues to be ready to impose a tax on companies offering digital providers, the finance ministry mentioned on Tuesday in an announcement set to annoy the US.

Canada first unveiled the proposed measure within the April finances, saying it will keep in place till main nations give you a coordinated method on taxing digital giants akin to Alphabet Inc’s Google (GOOGL.O) and Fb Inc (FB.O).

The Organisation for Financial Cooperation and Growth has agreed a typical method to make sure such corporations pay their share of taxes, however a treaty to implement this has but to be applied.

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In a fiscal replace, the finance ministry mentioned the brand new tax could be imposed as of January 1, 2024, however provided that the worldwide treaty had not come into power by that point. In that occasion, the tax could be payable on revenues earned as of Jan 1, 2022.

“It’s the authorities’s honest hope that the well timed implementation of the brand new worldwide system will make this pointless,” the replace mentioned.

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(Reporting by David Ljunggren, modifying by Julie Gordon)

((Reuters Ottawa bureau, +1 647 480 7891; david.ljunggren@tr.com))

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