Washington – The Canadian government has announced the removal of its digital services tax (DST), days after the U.S. government announced its strong opposition to the measure.
The first DST payments due today were retroactive charges dating back to 2022 and US companies were expected to pay almost $3 billion based on revenues, with annual costs to U.S. companies reaching up to potentially $2.3 billion, according to a study by the Computer & Communication Industry Association’s Research Center. CCIA has consistently advocated for the DST’s removal since its introduction and welcomes this development.
The following can be attributed to CCIA President and CEO Matt Schruers:
“It is encouraging that Canada is walking back its Digital Services Tax that mainly targeted U.S. exporters. We commend the U.S. and Canadian governments for reaching this agreement ahead of the June 30 payment deadline. We urge other governments that have proposed or enacted DSTs, including the UK, France, Germany, and Italy to follow suit and commit to fair, reciprocal international tax principles.”
