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ARTICLE · 30 JULY 2024

Canada's New Digital Services Tax Act Now In Force: Overview And Implications

On June 20, 2024, Bill C-59 received royal assent enacting Canada's Digital Services Tax Act (DST Act).

CanadaMedia, Telecoms, IT, Entertainment

On June 20, 2024, Bill C-59 received royal assent enacting Canada's Digital Services Tax Act (DST Act). However, Bill C-59 set out that the DST Act would not come into force until a day that was fixed by order of the Governor in Council. The Governor General in Council fixed the day that the DST Act came into force as June 28, 2024. Accordingly, the DST Act now applies.

To whom does it apply?

The DST applies to large businesses, both foreign and domestic, that meet both of two revenue thresholds.

  • Total revenue threshold – If a taxpayer or, if applicable, its consolidated group, earns total revenue from all sources of €750,000,000 or more in a fiscal year of the taxpayer or group that ends in a particular calendar year, the taxpayer or group would meet this threshold for the subsequent calendar year.

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