Digital Services Tax Regulations have been repealed

Plain-language summary · AI-assisted

The Digital Services Tax Regulations, which set out prescribed interest rates, revenue thresholds, the tax rate, and the deduction amount under the Digital Services Tax Act, have been repealed in their entirety. All substantive content — including the €750 million global revenue threshold, the $20 million in-scope revenue threshold, the $10 million registration threshold, the 3% tax rate, and the $20 million deduction amount — has been removed from the consolidated text. Businesses or groups that were monitoring obligations under the Digital Services Tax Act should be aware that the associated regulatory framework no longer exists in its prior form. Those with compliance programs or assessments tied to these thresholds and rates should review the current state of the Act and any replacement measures.

Who this affects
large digital services businesses · multinational corporations with Canadian digital revenues · tax compliance teams · in-house counsel advising on digital services tax obligations