The US legislation sparks speculation: Canada will make concessions on digital services tax.
The United States is increasingly against foreign taxes on American companies, which has sparked speculation among tax experts that Canada may make concessions on two tax measures. Last week, the US House of Representatives passed a tax bill mechanism aimed at retaliating against "unfair" foreign taxes, and just weeks later, large tech companies are set to pay their first taxes under Canada's digital services tax. This tax is a major source of friction between the two North American neighbors. The mechanism, known as Section 899, will increase taxes on individuals and businesses from countries identified by the United States as having discriminatory or unfair taxes.
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