What were the details of the Canadian digital services tax
Asked 10 days ago
Answer
Canada's digital services tax (DST) became law in 2024, applies retroactively to 2022, and targets large online companies earning over $20 million in digital services revenue from Canadian users. It applies to revenue from social media, online advertising, and online marketplace intermediation, affecting companies like Amazon, Google, and Meta, but not streaming services such as Netflix or Prime Video. The DST is expected to generate $7 billion over five years and has faced opposition from the U.S. and concerns about its impact on some Canadian businesses.
References
Canada's digital services tax became law in 2024, applies retroactively to 2022, and targets online companies earning over $20 million in digital services revenue from Canadian users. It covers revenue from social media, online advertising, and online marketplace intermediation, affecting companies like Amazon, Google, and Meta, but not streaming services such as Netflix or Prime Video.
The DST was introduced as a revenue generator and is expected to bring in $7 billion over five years. It has a higher threshold for affected companies compared to similar taxes in the U.K., France, and Italy. Some Canadian companies with significant online presence could also be impacted by the tax.