Latest news with #technologyTax
Yahoo
01-07-2025
- Business
- Yahoo
AP Top Extended Financial Headlines at 12:42 a.m. EDT
Canadian Prime Minister Mark Carney says trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms Sign in to access your portfolio
Al Jazeera
30-06-2025
- Business
- Al Jazeera
Canada rescinds digital services tax after Trump suspends trade talks
Canada has rescinded its digital services tax in a bid to advance trade negotiations with the United States, days after President Donald Trump called off talks in retaliation for the levy. Canadian Prime Minister Mark Carney, in a statement on Sunday, said he and Trump have now agreed to resume trade negotiations. 'Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis,' Carney said. The Canadian levy on technology firms had been set to go into effect on Monday. Trump, in a social media post on Friday, described the tax 'on our American Technology Companies' as 'a direct and blatant attack on our Country'. He then announced the suspension of trade talks with Canada. The US is home to some of the world's biggest technology companies, including Apple, Alphabet/Google, Amazon and Meta. Canada's Digital Services Tax Act (DSTA) came into force in June last year. It is a levy on tech revenues generated from Canadian users – even if providers do not have a physical presence in the country. The DSTA was first proposed during the 2019 federal election under then-Prime Minister Justin Trudeau, and received approval in Canada on June 20, 2024. It came into force a week later, on June 28. The first payments of this tax are due on Monday, June 30, 2025. Large technology firms with global revenues exceeding $820m and Canadian revenues of more than $14.7m must pay a 3 percent levy on certain digital services revenues earned in Canada. Unlike traditional corporate taxes based on profits, this tax targets gross revenue linked to Canadian user engagement. Digital services the levy will apply to include: Online marketplaces, social media platforms, digital advertising and the sale or licensing of user data. One of the most contentious parts of the new framework for businesses is its retroactive nature, which demands payments on revenues dating back to January 1, 2022.
