Canada is proposing a new digital levy on international tech companies like Google, Amazon, Facebook, and Netflix. A potential “Netflix Tax,” which is forecast to bring in more than CA$1.2 billion (US$937.4 million) over five years, could come in effect as soon as next July 1.
The digital tax would be collected from clients, and digital services companies would remit it. The levy would take the place of the current “honor system” through which residents are supposed to provide their fair portion of local and federal taxes on any merchandise or service they buy online, reported PYMNTS.
The digital tax is part of a broader five-year, CA$3.4 billion (US$2.65 billion) levy that was unveiled in parliament as the country’s finance minister revealed the impact COVID-19 has had on the economy.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
