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ARTICLE · 03 JULY 2025

Canada To Rescind Its Digital Services Tax

Osler, Hoskin & Harcourt LLP
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The Canadian federal government announced that it intends to rescind Canada's digital services tax (DST).

CanadaTax
Patrick Marley
Patrick Marley
Ilana Ludwin
Ilana Ludwin
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The Canadian federal government announced that it intends to rescind Canada's digital services tax (DST). The press release from the Minister of Finance and National Revenue was issued late at night on Sunday, June 29, 2025. The first payment under the Digital Services Tax Act (DSTA) was due today, June 30, 2025.

The DSTA entered into force on June 28, 2024, just over one year ago, after being enacted by Parliament on June 20, 2024.

The press release states that the DST will be rescinded in order to support Canada's "complex negotiations on a new economic and security partnership with the United States", which will now resume "with a view towards agreeing on a deal by July 21, 2025."

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