As long as the OECD countries have not yet agreed on a digital tax, Canada wants to introduce its own regulation. And so there will now be Canada digital tax from 2022
The G20 finance ministers have agreed to extend negotiations by 137 countries on a global digital tax until mid-2021. This is a new opportunity for the billion dollar tax revolution of the OECD.
In principle, the participating governments even agree that the digital economy must become a taxpayer, like all other industries. The billions in profits of Google, Apple, Facebook and Amazon – are by no means only virtual and nothing justifies the fact that they can avoid tax payments in international business, much better than the manufacturers of cars, chemical products or machines.
The most ambitious international tax reforms of this century have almost failed. But on Wednesday evening, the finance ministers of the 20 economically strongest countries (G20), decided on the sidelines of the autumn meeting of the International Monetary Fund and the World Bank, to give the global digital tax a new chance. To this end, they extended the time for negotiations until mid-2021. The OECD think tank failed to reach an agreement between the 137 negotiating states.
The result is that there will now be a Canada digital tax from 2022. Canada wants to introduce its own digital tax from 2022, until there is agreement on a global regulation. The Treasury Department announced on Monday that the equivalent of 2.6 billion US dollars should be earned over five years.
France also recently announced its own digital tax. This should particularly affect the large US corporations such as Facebook and Amazon. Even the EU Commission does not rule out going it alone.
Under the umbrella of the industrialized nations organization OECD, almost 140 countries have come together to adapt their tax laws to the digital age, which has prompted the Canada digital tax from 2022.
A global minimum tax and a new distribution of which country can tax how much digital services, has been planned. However, important details are still open and should be clarified by mid-2021.
The aim of the tax revolution of the OECD is to ensure that digital companies such as Google, Apple, Facebook and Amazon, called GAFA, after the first letters of their names, will also pay more taxes in the future. The OECD expects that the global tax cake for all countries could grow by 100 billion Euros annually.
The tax will ensure that large multinational tech companies, like any other company in the country, make a fair contribution. Details are to follow in the draft budget.
Has the major international corporate tax reform, with which the profits of the large digital corporations would be taxed more heavily than before, already failed? The Nobel Prize winner Joseph Stiglitz says yes.
But the news in Canada for now is that there will be a Canada digital tax from 2022!