Canada Continues Digital Service Tax Recognition Plan For Big Tech

Canada wants to apply digital tax (photo: dock. pexels)

JAKAFRTA - Canada will continue its planned digital service tax recognition for major tech companies, which are expected to generate 5.9 billion Canadian dollars (Rp 69.8 trillion) over five years, starting in fiscal year 2024/25. This was revealed according to the federal budget displayed on Tuesday, April 16.

Canada, which is looking for ways to tackle challenges in tackling digital giants such as Alphabet's parent Google and Amazon.com, which can record their profits in low-tax countries, has delayed for two years to provide an opportunity for the completion of talks on global agreements on the taxation of multinational companies. However, negotiations are still protracted.

Washington opposes this plan on the grounds that it unfairly targets US companies.

"By seeing the consecutive international delays in implementing the multilateral agreement, Canada cannot wait before taking action," the Canadian Ministry of Finance said in its annual budget. "The government is continuing with its long-term plans to implement Digital Service Taxes,"

The tax will take effect for the 2024 calendar year, with the first year covering taxed revenues obtained since January 1, 2022.