International corporate tax and digitalization

Abstract

Implementation of a new corporate income tax for companies offering digital services. The tax will take effect January 1, 2022 and details will be revealed in the 2021 budget.

It is assumed that it will be a 3% tax introduced as a value-added tax (VAT), targeting advertising and digital intermediation services, and will apply to businesses with worldwide revenues of at least $1 billion and Canadian revenues of more than $40 million.

This assumption is consistent with the cost estimate of the tax on digital services carried out during the last election campaign and is based on article 1 of Law No. 2019-759 passed in France.