(Reuters) – Netflix Inc (NFLX.O) said on Tuesday it had received formal approval to set up a C$ 500 million production unit in Canada and sought to quell talk it had sought special tax benefits for investing in its first such unit outside the United States.
The maker of Emmy winning shows like The Crown and Black Mirror last month announced the agreement with the Canadian government of an investment spread over a minimum of five years. (bit.ly/2k4cBWh)
The company has since faced criticism in Canada that it does not pay taxes there. (bit.ly/2wLo4Ma)
On a blogpost, Netflix said its Canadian investment was approved under the Investment Canada Act, and that no tax deals were part of the approval to launch our new Canadian presence. But is also said it was not paying sales tax in line with existing Canadian legislation.
“Netflix follows tax laws everywhere we operate. Under Canadian law, foreign online services like Netflix aren’t required to collect and remit sales tax,” the company said.
Reporting by Nivedita Bhattacharjee; editing by Patrick Graham