top of page
Moving People

News

Canada announces plan to tax foreign digital giants from 2022

GNA

Canada plans to add further tax requirements for companies providing online products and services under a new "fair tax system for the digital economy," Finance Minister Chrystia Freeland said on Monday.


The changes will include charging large foreign-based companies Goods and Services Tax/Harmonized Sales Tax (GST/HST), which they currently do not have to pay.


The federal government plans to implement a digital tax directly on corporations providing digital services, which will take effect on January 1, 2022. It could boost federal revenue by 3.4 billion Canadian dollars (2.6 billion US dollars) over five years, Freeland said in a Fall economic update.


The current system "puts the burden on Canadian consumers to remit the sales tax," Freeland said. "[It] gives foreign-based digital corporations an unfair advantage, and undercuts the competitiveness of Canadian companies."


The new tax is expected to hit companies including Google's parent company Alphabet, Apple as well as streaming services such as Spotify and Netflix.


Digital marketplaces, which include app stores, will have to pay GST/HST from July 2021 under the new proposal.


This measure is expected to bring in 1.2 billion Canadian dollars in five years.


The economic statement outlined other major financial policies intended to steer the country through economic downturn amid the coronavirus pandemic, including a short-term stimulus package valued at 70 billion to 100 billion Canadian dollars over roughly three years.

1 view

Comments


construction-image1.jpg

Subscribe and keep up to date with all the latest news from Oakmark

Subtle Shapes Transparent
WEST AFRICA'S NO.1 ECONOMIC AGENTS

Oakmark Global Vision provides a bespoke business package to established corporate bodies, investors, and entrepreneurs who desire to enter the West & Pan African market. Find out more >

© 2025 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

Regional Office

International Office

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T

Nigeria 

+234 -(0)- 929 207 02

+234 (0) 704 497 6500

info@oakmarkglobalvision.com

King Court, 17 School Road

Hall Green, Birmingham

United Kingdom  B28, 8JG

+44 (0) 121 244 1814

+44 (0) 746 625 2505

info@oakmarkglobalvision.com

 Oakmark Global Vision Limited

bottom of page