Canada plans to impose a 3% digital services tax on large tech companies in 2024, despite US opposition.

Canada will start applying a proposed tax on large tech companies in 2024 despite threats of trade reprisals from the US. The digital services tax, currently before Canada's Parliament, will apply a 3% levy on the digital services revenue of companies with annual worldwide revenue of over C$1.1bn and taxable revenues from Canadian users above C$20m. The tax is expected to raise C$5.9bn over five years starting in fiscal 2024/25. The US opposes the plan as it singles out US firms.

April 16, 2024
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