The government of Canada He announced the revocation of the tax on digital services (Digital Services Tax, DST) which affected US technological companies. The decision was communicated by the Minister of Finance, François-Philippe Champagne, with the aim of facilitating the resumption of commercial negotiations with the United States, previously interrupted by the US administration.
There feewhich should have come into force on Monday, provided for a 3% imposition on revenues generated by Canadian users for some large digital companies, including Amazon, Google, Meta, Uber and Airbnb. The measure would have had a retroactive character, with an estimated impact of about 2 billion dollars US to be paid by the end of the month.
The announcement of the suspension of the tax comes after President Trump had interrupted the interviews with Ottawa, defining the DST a hostile measure against the United States. During the recent summit of the G7 held in Kananaskis, the two countries had agreed for a 30 -day deadline to conclude the negotiations. The retreat of the digital tax comes after days of strong pressure from the Big Tech to stars and stripes, groups of lobbying of Washington and political leaders of both sides, who had defined the “unfair” and harmful measure for US companies.
Another important victory for Trump, a few days after the agreement on the Global Minimum Tax reached at the G7. The large seven of the Earth have established a “parallel solution” for the United States, starting from the “Side-by-Side” proposal advanced by the States, which provides for the exemption from the rule on inclusion of income and by the rule on profits under taxed, in recognition of current US minimum tax rules. For the US administration, the new agreement represents a significant result: according to estimates, American companies will save up to 100 billion dollars in foreign taxes. Also on that occasion Trump had attacked the European Union on Digital Tax, accusing Brussels of wanting to penalize US companies.
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