Canada’s Minister of Finance, Chrystia Freeland, has introduced legislation called the Fall Economic Statement Implementation Act, 2023 (Bill C-59), which includes the digital services tax and other measures. The bill proposes a 3 percent annual tax on certain digital services revenue for businesses that meet specific revenue thresholds. It also establishes rules for liability, reporting, and filing requirements related to the digital services tax. Additionally, the bill includes measures to limit the deductibility of net interest and financing expenses for certain corporations and trusts, as well as implementing hybrid mismatch rules to address cross-border tax avoidance structures.
More information is available on the Parliament of Canada website.
Source KPMG
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