- Canada’s Digital Services Tax Act (DSTA) will come into force on 28 June 2024
- The CIF date was set by an Order in Council issued by the Governor General in Council
- The CIF date was a surprise to many in the industry, coming just over a week after Bill C-59 received Royal Assent
- The OIC was issued after considering the OECD’s Two-Pillar Solution and Canada’s preference for a multilateral approach
- The DSTA impacts large domestic and foreign businesses with global revenues of at least €750m
- Taxpayers meeting the conditions will be required to pay a 3% tax on taxable Canadian digital services revenue exceeding CA$20m
- Considerations include in-scope revenue, compliance processes, system readiness, and financial reporting accruals
Source: globaltaxnews.ey.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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