- The Digital Services Tax Act (DSTA) aims to tax large domestic and foreign businesses on their Canadian digital services revenue
- The Digital Services Tax (DST) was passed with Royal Assent on June 20, 2024, with retroactive effect to Jan. 1, 2022
- DST applies to large businesses with total revenue exceeding €750 million and generating at least $20 million of “In-Scope” Canadian revenue
- DST applies at a rate of three per cent on certain revenue earned by large businesses in excess of $20 million CDN in a calendar year
- In-Scope revenue includes online marketplace services, online advertising services, social media services, and user data
- Businesses meeting the €750 million threshold and earning more than $10 million CDN of Canadian digital services revenue must register for the DST
- Detailed analysis is required for businesses part of a consolidated group with global revenue exceeding €750 million and Canadian In-Scope revenue exceeding $20 million
Source: facebook.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.
