What’s the Digital Services Tax?
The big tech companies in question would all been impacted by the new tax.
Specifically, the tax would have imposed a 3% levy on revenues from digital services paid by Canadian users, and it would have been applied retroactively, costing companies an estimated $2 billion when it went into effect.
Amazon, Google, and Meta, as well as Uber and Airbnb were among the companies that sell digital services to those in Canada.
The services in question can range from search engines to social media or online marketplaces, but they come with a few built-in caps that would exempt many smaller tech companies entirely: The tax would have only applied to revenues exceeding $20 million. It would also have only applied to companies with $1.1 billion or more in global revenue.
