Canada’s Digital Services Tax is Unfair to the US — Congress Noticed

Canada’s Digital Services Tax is Unfair to the US — Congress Noticed

The One Big Beautiful Bill Act (OBBBA), intended to lower the tax burden for Americans and thus to stimulate growth, contains one provision that has caused much alarm in Canada — potentially imposing a punishing tax on Canadians who invest in US companies. Canadian individuals and entities could face increased US withholding tax rates of 30 percent or more on US-source dividends, interest, royalties, and capital gains on real estate. The financi…