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Canada to Repeal Digital Services Tax to Ease US Tensions and Secure New Agreement

  • Canada will repeal the Digital Services Tax as part of negotiations with the US.
  • The DST was introduced in 2024 with retroactive application from January 1, 2022.
  • The US claimed the DST breached the USMCA, leading to tensions.
  • US imposed tariffs on Canadian imports, prompting Canada to retaliate with counter-tariffs.
  • An agreement was reached to finalize a new economic and security deal by July 21, 2025.
  • Canada aims to negotiate a multilateral agreement on digital services taxation.
  • The repeal primarily affects major US tech companies like Google, Amazon, Meta, and Apple.

Source: vatabout.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.

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