3% DST will be collected if no agreement on OECD tax reforms
- Canada’s broadcast regulator announced plans to require foreign streaming services to contribute 5% of their Canadian sales to support local broadcast news and produce domestic video and audio content.
- Additionally, Canada has implemented a digital-services tax, which could lead to trade retaliation from the US.
- The tax applies a 3% levy on revenue from companies providing digital services to Canadian users, dating back to 2022.
- US officials and members of Congress have warned that this tax could result in trade retaliation from Washington.
- The US Chamber of Commerce has argued that the tax would violate Canada’s obligations under the USMCA and the World Trade Organization.
- This move has raised concerns about potential retaliatory trade action from the US, Canada’s most important trading partner.
Source
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