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| Canada plans to introduce a digital tax in 2022 |
Canada's Treasury said: Canada plans to impose a digital tax on companies providing digital services from 2022, and Canada will continue to apply this tax rate until the major countries succeed. To a coordinated method of taxation.
The OECD is taking a holistic approach to ensure the fallout from the coronavirus is driving digital giants like Google and Facebook to pay their taxes.
Canada has expressed concern about delays in striking a deal, and the threat to tax digital services has raised the threat of commercial retaliation from the outgoing administration of the US President (Donald Trump).
The new digital tax will take effect on January 1, 2022 and will remain in effect until a common method is agreed upon.
Starting in fiscal year 2021-2022, this move will increase federal revenues by $ 3.4 billion ($ 2.6 billion) over a five-year period.
"Canadians want a fair tax system and everyone should pay their fair share," Treasury Secretary Chrystia Freeland told lawmakers this fall.
She added: If necessary, Canada will take unilateral steps to impose digital taxes on large multinational digital companies so that those companies can pay their fair share like any other company operating in Canada.
In addition, foreign sellers who do not have a real business in Canada are required to collect sales taxes on products such as mobile apps, online video games and live broadcasts.
The move is expected to raise $ 1.2 billion in five years.
Ottawa is also planning to impose tax sales on people who rent short-term accommodations. The popular digital rental platform currently does not tax and penalize hotels.
The government has also strongly agreed to grant stock options to prevent high-income people working for large companies from making unfair profits.
Currently, the annual maximum annual cap on awarding stock options to these individuals is $ 200,000, and Ottawa does not specify high-income individuals or large corporations.
These rules do not apply to startups, which generally do not pay competitive salaries and can instead offer stock options.
The Treasury Department said the new regulations will generate about CAD $ 200 million in federal revenue.