Tech Firms Urge Canada to Drop Digital Services Tax Plan

June 18, 2021, 9:28 PM UTC

Tech firms are urging Canada to abandon a proposed 3% digital services tax on tech companies until there is agreement at a global level to overhaul tax rules.

Major industry associations filed submissions this week with Canada’s Department of Finance during a consultation for a tax that would target companies with 750 million euros ($890 million) or more in global revenues and C$20 million ($16 million) or more in domestic revenues. The tax would be in force Jan. 1, 2022.

“We encourage Canada to reconsider discriminatory tax measures that depart from norms and target specific U.S. companies,” Arthur D. Sidney, ...

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