Canada rescinds Digital Services Tax

The tax would have cost companies like Meta, Google, and Amazon billions of dollars.

Transcript

00:00Billions of dollars in digital service taxes avoided.

00:04Canada decided to scrap its controversial tax on American tech companies just hours before the first payments were due.

00:12Ottawa said instead it will focus on advancing broader trade negotiations with the United States.

00:17The reversal comes after U.S. President Trump said over the weekend that he will be terminating all discussions on trade with Canada

00:24in response to Ottawa's decision to impose the tax, calling it a direct and blatant attack on the U.S.

00:31The first payments were initially set to be collected on Monday.

00:34The 3 percent levy would have been slapped on both domestic and foreign tech companies,

00:38including Meta, Amazon and Google, on the money they make from Canadian users and customers.

00:44Since it was retroactive to 2022, U.S. companies could have been looking at a $2 billion tax bill.

00:51Canada's Minister of Finance and National Revenue said, quote,

00:54rescinding the digital services tax will allow the negotiations of a new economic and security relationship

01:00with the United States to make vital progress and reinforce our work to create jobs

01:05and build prosperity for all Canadians.

01:08That'll do it for your daily briefing from the New York Stock Exchange.

01:11I'm Caroline Woods with The Street.