Latest news with #DigitalServicesTaxAct
Qatar Tribune
30-06-2025
- Business
- Qatar Tribune
Canada scraps digital services tax
Agencies Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, only hours before it was due to take effect, in what appeared to be a bid to advance stalled trade negotiations with its southern neighbor. Canadian Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement. Trump abruptly called off trade talks on Friday over the tax targeting U.S. technology firms, saying that it was a 'blatant attack.' He reiterated his comments on Sunday, pledging to set a new tariff rate on Canadian goods within the next week, which threatened to push U.S.-Canada relations back into chaos after a period of relative calm. The breakdown in trade talks comes after the two leaders met at the G-7 in mid-June and Carney said they had agreed to wrap up a new economic agreement within 30 days. Canada's planned digital tax was 3% of the digital services revenue a firm takes in from Canadian users above $20 million in a calendar year, and payments were to be retroactive to 2022. It would have impacted U.S. technology firms, including Amazon, Meta, Alphabet's Google and Apple, among others. Monday collection will be halted, Canada's finance ministry statement said, and Finance Minister Francois-Philippe Champagne will bring forward legislation to rescind the Digital Services Tax Act. 'The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians,' the statement said. 'Canada's preference has always been a multilateral agreement related to digital services taxation.' Stock index futures rose after the news that the digital tax will be rescinded, and the bullish sentiment spilled over into Asian markets. Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data. The Biden administration had requested trade dispute settlement consultations over the tax in 2024, saying it was inconsistent with Canada's North American trade deal obligations.
Straits Times
30-06-2025
- Business
- Straits Times
Canada rescinds digital services tax to advance stalled trade talks with US
U.S. President Donald Trump meets with Canadian Prime Minister Mark Carney in the Oval Office at the White House in Washington, D.C., U.S., May 6, 2025. REUTERS/Leah Millis/File Photo FILE PHOTO: U.S. President Donald Trump and Canadian Prime Minister Mark Carney attend a meeting with G7 leaders and guests, at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. REUTERS/Kevin Lamarque/File Photo OTTAWA - Canada scrapped its digital services tax targeting U.S. technology firms just hours before it was due to take effect on Monday, in a bid to advance stalled trade negotiations with the U.S. Canadian Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement late on Sunday. "Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America," U.S. Commerce Secretary Howard Lutnick responded in a post on X. Wall Street futures hit record highs on Monday morning as sentiment in the markets rose amid optimism over U.S. trade negotiations with key partners, including Canada. Trump abruptly called off trade talks on Friday over Canada's digital services tax, saying it was a "blatant attack." He reiterated his comments on Sunday, pledging to set a new tariff rate on Canadian goods within the next week, which threatened to push U.S.-Canada relations back into chaos after a period of relative calm. Trump and Carney met at a G7 summit earlier this month, with the Canadian prime minister saying they had agreed to wrap up a new economic agreement within 30 days. Canada's planned digital tax was 3% of the digital services revenue a firm takes in from Canadian users above $20 million in a calendar year, and payments were to be retroactive to 2022. It would have impacted U.S. technology firms, including Meta, Alphabet's Google and Apple. The tax collection slated for Monday will be halted, the statement from Canada's finance ministry said. Finance Minister Francois-Philippe Champagne will bring forward legislation to rescind the Digital Services Tax Act. "The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians," the statement said. "Canada's preference has always been a multilateral agreement related to digital services taxation." Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S. exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data. The Biden administration had requested trade dispute settlement consultations over the Canadian digital services tax in 2024, saying it was inconsistent with Canada's North American trade deal obligations. Canada had escaped Trump's broad tariffs imposed in April but faces 50% duties on steel and aluminum exports to the U.S. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
30-06-2025
- Business
Canada rescinds digital services tax to advance trade discussions with the United States
The federal government announced late Sunday evening it is rescinding the digital services tax, days after U.S. President Donald Trump demanded it gone and cut off Canada-U.S. trade negotiations. In a press release, the federal government said it would rescind the tax in anticipation of a mutually beneficial comprehensive trade arrangement with the United States. Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025, the press release added. Finance Canada said the tax collection, set to begin Monday will be halted and Finance Minister François-Philippe Champagne will soon bring forward legislation to rescind the Digital Services Tax Act. EARLIER | Tech companies face steep DST bill: Début du widget Widget. Passer le widget ? Fin du widget Widget. Retourner au début du widget ? How much Canada's digital service tax will cost U.S. tech companies U.S. President Donald Trump says he's pulling back from the bilateral trade discussions because Canada plans to move ahead with its digital services tax. The CBC's Sam Samson discusses how much the tax will cost American companies. In a statement posted on social media (new window) late Sunday evening, Champagne said Canada is engaged in complex negotiations on a new economic and security partnership with the U.S. Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians, Champagne added. CBC News has reached out to the White House for comment. On Friday, Trump said he was ending all U.S. trade discussions with Canada (new window) because of the digital services tax, which would have had U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay three per cent on revenues from Canadian users. The policy would have applied retroactively, leaving U.S. companies with a $2-billion US bill due at the end of the month. These global digital firms are often able to skirt paying taxes in the countries where they operate, and the last Liberal government pitched the DST as a way to bring the tax code up to date and capture revenues earned in Canada (new window) by firms located abroad. In the Oval Office on Friday afternoon, Trump said the U.S. has such power over Canada, and that he was upset the country is following a taxation strategy similar to Europe's (new window) . It's not going to work out well for Canada. They were foolish to do it, he said of imposing the DST, which was passed into law last year with a delayed application. Trump also complained about Canada's supply management system on Friday. We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country, Trump said in a social media post (new window) . Those high tariffs on U.S. dairy only apply if exports exceed set quotas. Below the quotas, the U.S. dairy products enter tariff-free because of the Canada-United States-Mexico Agreement, according to the U.S. Department of Agriculture (new window) , which also said almost all agricultural products traded between the two countries are free of tariffs. Benjamin Lopez Steven (new window) · CBC News
Time of India
30-06-2025
- Business
- Time of India
Carney bends against Trump: In surprise shift, Canada drops Digital Tax to reignite trade talks with US
On June 29, 2025, Canada's government said it is removing the Digital Services Tax (DST) to help restart trade talks with the U.S, as per the Department of Finance Canada. This decision comes from Prime Minister Mark Carney, who wants to get the best economic and security deal for Canada with the U.S. Carney and Trump agreed to restart trade talks and aim to finish a deal by July 21, 2025. The DST was first introduced in 2020 because big tech companies like Amazon were making money from Canadians but not paying fair taxes. Canada wanted to tax big tech Canada had hoped for a global agreement on taxing digital companies but made the DST in the meantime. The tax was supposed to be 3% on digital services revenue from Canadian users if the firm made over $20 million per year, with charges going back to 2022, as per the report by Reuters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cyprus Is Open for Investors - You Might Be Interested Cyprus Invest | Search ads Undo The first DST payment was supposed to be collected on June 30, 2025, but now that's been cancelled. Finance Minister François-Philippe Champagne will now introduce a law to officially remove the Digital Services Tax Act, as stated by the Department of Finance Canada. ALSO READ: Wordle answer and hints today, June 30: Puzzle #1472 – clues, meaning, and full guide to solve it Live Events Carney said the government will only make deals that help Canadian workers and businesses, and this move helps negotiations move forward. Champagne added that the goal is to make Canada the strongest economy in the G7, and scrapping the tax will help with that, as quoted by PM Carney in Finance Canada. Trump pushed back hard On Friday, Trump had suddenly stopped trade talks, calling the digital tax a 'blatant attack' on U.S. tech companies. Trump warned he would put new tariffs on Canadian goods within a week if the tax stayed, according to the report by Reuters. This trade fight came just weeks after a friendly G7 meeting, where both leaders said they wanted a new deal in 30 days. After the announcement to drop the tax, stock markets rose, and good vibes spread to Asian markets too, according to reports. In 2024, the Biden administration had also complained about the tax, saying it broke trade rules in the USMCA deal. Canada is America's second trade partner, just behind Mexico, and one buyer of U.S. goods, so keeping trade calm is important. Canada had avoided Trump's big tariffs from April, but still faces 50% duties on steel and aluminum, as per the report by Reuters. FAQs Q1. Why did Canada remove the Digital Services Tax? Canada removed DST to restart trade talks with the U.S. and avoid new tariffs. Q2. How does the DST affect U.S. companies? It would have charged U.S. tech firms like Amazon 3% on their Canadian digital sales.
New York Post
30-06-2025
- Business
- New York Post
Canada rescinds digital services tax targeting US technology firms to advance stalled trade talks
Canada scrapped its digital services tax targeting U.S. technology firms late on Sunday, just hours before it was due to take effect, in a bid to advance stalled trade negotiations with the United States. Canadian Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations in order to agree on a deal by July 21, Canada's finance ministry said in a statement. Trump abruptly called off trade talks on Friday over the tax targeting U.S. technology firms, saying that it was a 'blatant attack.' Advertisement 5 Canadian Prime Minister Mark Carney said US and Canada will resume trade negotiations later in July. AP 5 Trump abruptly ended trade talks with Canada on Friday, June 27, 2025. Xinhua/Shutterstock He reiterated his comments on Sunday, pledging to set a new tariff rate on Canadian goods within the next week, which threatened to push U.S.-Canada relations back into chaos after a period of relative calm. The breakdown in trade talks comes after the two leaders met at the G7 in mid-June and Carney said they had agreed to wrap up a new economic agreement within 30 days. Advertisement Canada's planned digital tax was 3% of the digital services revenue a firm takes in from Canadian users above $20 million in a calendar year, and payments were to be retroactive to 2022. 5 Mark Carney and Donald Trump at the G7 Summit. POOL/AFP via Getty Images It would have impacted U.S. technology firms, including Amazon AMZN.O, Meta META.O, Alphabet's Google GOOGL.O and Apple AAPL.O, among others. Advertisement Monday collection will be halted, the Canada's finance ministry statement said, and Finance Minister François-Philippe Champagne will bring forward legislation to rescind the Digital Services Tax Act. 'The DST was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians,' the statement said. 'Canada's preference has always been a multilateral agreement related to digital services taxation.' 5 Canadian businesses have urged locals to buy from Canada versus America. REUTERS Stocks index futures rose after the news the digital tax will be rescinded and the bullish sentiment spilled over into Asian markets. Advertisement Canada is the second-largest U.S. trading partner after Mexico, and the largest buyer of U.S exports. It bought $349.4 billion of U.S. goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data. 5 A Canadian national flag is seen in the background as workers cross the street in front of ArcelorMittal Dofasco's steel manufacturing buildings in Hamilton, Ontario. AFP via Getty Images The Biden administration had requested trade dispute settlement consultations over the tax in 2024, saying it was inconsistent with Canada's North American trade deal obligations. Canada had escaped Trump's broad tariffs imposed in April but faces 50% duties on steel and aluminum.
