Canada Enacts Digital-Services Tax Amid US Reprisal Threat (2)

Canadian Prime Minister Justin Trudeau’s government has authorized the implementation of a digital-services tax on large foreign technology companies, despite warnings of trade retaliation from the US.

A government notice posted online indicated the tax came into effect as of June 28. It will apply for calendar year 2024, with that first year covering taxable revenues earned since Jan. 1, 2022.

The tax is a 3% levy on the digital services revenue a company makes from Canadian users above C$20 million ($14.7 million) in a calendar year. It would apply only to companies with annual worldwide revenue of more ...