Canada Enacts 3% Digital-Services Tax Amid US Reprisal Threat on June 28

Jul 4, 2024, 12:39 PM

Canada has authorized the implementation of a digital-services tax, which imposes a 3% levy on revenue from large foreign tech companies. This tax, retroactive to 2022, applies to revenues above C$20 million from Canadian users. The move has prompted warnings of trade retaliation from the Biden administration and Congress. A notice published late Wednesday indicated that the Trudeau-led cabinet enacted the tax on June 28.