Ottawa has announced the “Digital Service” tax “in anticipation” of a comprehensive commercial arrangement that benefits with the United States.
This step comes after US President Donald Trump During the weekend He will “end all discussions about trade with CanadaIn response to Ottawa’s decision to impose a Digital services tax On American technology companies.
“Today’s announcement will support the resumption of negotiations around 21 July 2025, a schedule at the Summit of the Group of Seven Group of this month in Kanancice,” Canadian Prime Minister Mark Carne said in the statement.
The first payments of the digital services tax in Canada, which were enacted last year, were collected retroactively until 2022, at the beginning to be collected on Monday. The tax had applied to both local and foreign technology companies, including US giants such as Amazonand Google and Dead With 3 % tax.
This decision was from Ottawa about to rotate from Canadian officials earlier this month, who said they You will not stop the digital services taxDespite the strong opposition from the United States
“The cancellation of the digital services tax will provide new economic and security relationship negotiations with the United States to achieve vital progress and enhance our work to create job opportunities and build prosperity for all Canadians,” added the Minister of Finance in Canada and National Revenue Francois-Philip Al-Shambania.
However, the statement issued by the Ministry of Finance in Canada also said that Carney “was clear that Canada would take as long as necessary, but did not return, to achieve this deal.”
The digital services tax was provided for the first time in 2020 to process the tax gap, as many large technology companies were obtaining large revenues from Canadians, but it was not imposed on it.
Ottawa also said that the tax was enacted while working with international partners – including the United States – on a multilateral agreement that replaces national digital services taxes.
Soon after Trump said the United States “end all discussions about trade with CanadaTreasury Secretary Scott Besent Morgan Brennan told the CNBC that the American commercial actor, Jameson Jarir, will investigate the tax on “determining the amount of damage to American companies and the US economy in general.”
“Canada has this digital services tax. And many other countries do so as well. We disagree, and we believe it distinguishes against American companies,” ” Pesin said On CNBC “The conclusion is a bell: additional work”.
“Many countries within the European Union have digital service taxes. None of them did so retrospectively,” Besin added.
The total American commodity trade with Canada reached about 762 billion dollars last year, according to the American Trade Representative Office.
