- Canada’s Digital Services Tax Act has been tabled in the House of Commons.
- The legislation impacts large Canadian and foreign businesses with global consolidated revenues of at least €750m and CA$10m in Canadian digital services revenue.
- Businesses should review the draft legislation to determine if their revenue streams fall within the scope of the tax.
- The thresholds for global revenue, in-scope revenue, and registration have been moved to the Digital Services Tax Regulations.
- The provision for security has been removed, and a due diligence defense has been added.
- The DSTA may come into force on 1 January 2024, but the date of enactment will be determined by the Governor in Council.
- Businesses should closely monitor the implementation of the DSTA and potential reactions from other governments, particularly the United States.
Source: globaltaxnews.ey.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
