The Canadian government submits a draft law to Parliament regarding the implementation of a global minimum corporate tax
OTTAWA, 2nd May / WAM / The Canadian government has submitted to Parliament a draft law on implementing a global minimum corporate tax for study along with tax incentives for investment worth 93 billion Canadian dollars (67.77 billion US dollars).
For this purpose, Canadian Finance Minister Chrystia Freeland submitted a notification of the ways and means that include the tax measures that the government will introduce in the 2024 Budget Act.
The draft law includes several parts of the global minimum corporate tax framework, including imposing a local additional tax to ensure that the effective minimum corporate tax is not less than 15%, while approving an income calculation rule targeting foreign companies.
The draft law also includes safe havens for implementing the global corporate tax framework, including a transitional safe haven for each country separately, while simplifying tax calculations and reducing the requirements for compliance with this law for companies. The new tax will be imposed on the targeted companies retroactively as of December 31, 2023. .
It is noteworthy that the Organization for Economic Cooperation and Development, which represents the advanced industrial economies in the world, has approved a unified minimum corporate tax rate of 15% with the aim of reducing the tax cuts offered by some countries to attract companies to them at the expense of other countries.
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