Canada to Delay Its Digital Services Tax for OECD’s Global Corporate Tax

The Canadian government will postpone and possibly scrap its digital services tax on Big Tech after signing a global pact with 135 other countries to overhaul the way large multinational companies are taxed. The agreement, reached by members of the Organisation for Economic Co-operation and Development (OECD) on Oct. 8, imposes a global minimum corporate tax of 15 percent on big multinational companies starting in 2023. The deal requires the largest and most profitable multinational enterprises—those with global sales of about $28.7 billion a year and over 10 percent profitability—to pay a “fair share of tax” in countries where they operate, regardless of whether they have a physical presence there. But the condition is that participating countries—including Canada—are required to “remove all Digital Services Taxes and other relevant similar measures with respect to all companies, and to commit not to introduce such measures in the future,” according to a statement …

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