Canada agrees to delay its own Big Tech tax after OECD sets global 15% rate

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Canada will delay — and potentially abandon — a digital services tax on Big Tech after the Organization for Economic Co-operation and Development reached a deal on a multilateral tax approach. The agreement by 136 countries, reached Friday, sets a global minimum corporate tax rate of 15 per cent for multinational companies. It will also require the largest and most profitable global companies — those with global sales above about $28.7 billion a year and more than 10 per cent profitability — to pay some taxes in countries where they operate, even if they don’t have a physical presence there. But in exchange, OECD countries will have to remove or hold off on implementing their own digital services taxes. That includes Canada’s promised tax on tech giants, targeted at large companies that operate online marketplaces, social media platforms and earn revenue from online advertising. Companies like Amazon, Google and Facebook, as well as Uber and Airbnb, if they also meet minimum revenue criteria, would be covered by the tax. The government estimates it would bring in $3.4 billion over five years.

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