220222 Comments DS Tproposal Dept of Finance Canada


February 23, 2022


The U.S. Chamber submitted comments to express several concerns about Canada’s proposed Digital Services Tax Act and the application of a Digital Services Tax (DST) by Canada:

1)      DSTs pose a substantial risk to the economic recovery in Canada and globally given the outsized importance of digitization and the potential growth in global services trade.

2)      Canada’s DST proposal is discriminatory and violates obligations Canada has undertaken as a party to the WTO Agreement, CUSMA, and the U.S.-Canada tax treaty

3)      Canada should comply with the commitment it made under the OECD/G20 Inclusive Framework to forgo any DST until the end of 2023 or the implementation of the Pillar One framework.