03.23.22

New Digital Tax Act

Canada’s department of Finance has released a draft of the Digital Services Tax Act (DSTA). This Act covers a wide array of entities- both residents and non-residents who engage with online users in Canada. The tax is proposed to be set at 3%, and it is expected that this will become payable in 2024, in respect of revenues earned from January 2022.

As this is a draft only, dates are provisional, and we can expect more concrete information in the coming months.