Canada rescinds digital services tax

The feeral governmement will rescind the Digital Services Tax to advance trade negotiations with the United States.

Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21.

The tax was announced in 2020 to address the fact that many large technology companies operating in Canada may not otherwise pay tax on revenues generated from Canadians.

The June 30, 2025, collection is halted, and Minister Champagne will soon bring forward legislation to rescind the Digital Services Tax Act.