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The Prime Minister of Canada claims that trade negotiations with us will resume with a decision to drop a new sample.
Canada has canceled its Digital services tax In order to advance trade negotiations with the United States, a few days after US President Donald Trump called Talks for reprisals for the levy.
Canadian Prime Minister Mark Carney in a statement said on Sunday, said he and Trump had now agreed to resume commercial negotiations.
“Today’s announcement will support a resumption of negotiations around July 21, 2025, the calendar appeared at the top of G7 leaders this month in Kananaskis,” said Carney.
The Canadian levy on technological companies was due to come into force on Monday.
Trump said on Friday that the tax, targeting “our American technological societies”, was “a direct and obvious attack against our country”.
The United States is home to some of the world’s largest technological companies, including Apple, Alphabet / Google, Amazon and Meta.
Canadian technology journalist Paris Marx told Al Jazeera that Canada withdraw efforts to tax technological companies shows that “Canada can be pushed”.
“Multinational technology companies do not pay their fair share of tax in Canada and the digital services tax is designed to remedy it,” said Marx, who hosts the Podcast Tech Won’t Save US.
“More and more countries are promulgating taxes on digital services for this reason, and Canada is wrong to retreat,” added Marx.
Canada Digital Services TAX ACT (DSTA) has a levy on technological income generated by Canadian users – even if providers do not have a physical presence in the country.
It obliges large technological companies with global income over $ 820 million and Canadian income of more than $ 14.7 million to pay a 3% levy on certain digital service income in Canada. Unlike the traditional corporate taxes based on profits, this tax targets raw income linked to the commitment of Canadian users.
Digital services The levy will apply to include online markets, social media platforms, digital advertising and selling or granting user data licenses.
One of the most controversial parties of the new executive for companies is its retroactive nature, which requires payments on income dating from January 1, 2022.