Canada: Department of Finance announced repeal of digital services tax

On 29 June 2025, the Department of Finance Canada announced the repeal of the Digital Services Tax (DST), to support the economic and security negotiations with the United States. It was highlighted that the scheduled collection of tax revenues by 30 June 2025 will be halted, and legislation to formally rescind the Digital Services Tax Act will be introduced. The Budget Implementation Bill enacted 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 imposed 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.