Canada: Implemented Budget Implementation Bill (C-59) including digital service tax measures

On 28 June 2024, the Budget Implementation Bill (C-59) was implemented by the Canadian Government. The Bill enacts a digital services tax on large digital corporations, including revenue from online marketplaces, online advertising, social media platforms and user data sales or licensing from online interfaces. The Bill imposes a digital services tax from 2024 onwards, covering taxable revenues earned since 1 January 2022, and applies to large domestic and international businesses with global revenues of EUR 750 million or more in the previous year and digital services revenue from Canadian users exceeding CAD 20 million in the calendar year. The Bill mandates that businesses are required to file tax returns annually by 30 June, including the initial payment for revenues from 1 January 2022 to 2024, due by 30 June 2025. The Bill also states that non-registration incurs penalties of CAD 20’000.