US EditionCanada rescinds digital services tax to advance stalled US trade talks
CANADA, JUN 30 – Canada dropped a planned 3% tax on U.S. tech firms to avoid a $2 billion charge and restart stalled trade talks, aiming for a deal by July 21, officials said.
- On June 30, 2025, Canada eliminated its digital services tax in an effort to help restart trade talks with the United States.
- The tax imposed a 3% charge on digital revenues generated in Canada that surpassed $20 million, targeting companies with global earnings above $1.1 billion, which led U.S. President Trump to halt trade discussions.
- The levy targeted U.S. technology firms like Amazon, Google, Meta, Uber, and Airbnb and was retroactive to revenues dating from January 1, 2022, escalating trade tensions.
- Mark Carney announced on Sunday that he and Trump agreed to resume negotiations aiming for a deal by July 21, 2025, following this month's G7 Summit in Kananaskis.
- With Canada withdrawing the tax, both countries expect stalled trade talks to progress and reduce economic conflict affecting technology and other sectors.
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553 Articles
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The Chronicle-Journal
Ottawa must pass a law revoking digital service tax before it can issue refunds: CRA
OTTAWA - Companies that paid the now-defunct digital services tax will have to wait for Ottawa to pass new legislation before they can get their refund, the Canada Revenue Agency has confirmed.
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