The Digital Services Tax (DST), which comes into effect on January 1, 2024, could raise more than $7.2 billion over five years, according to the Parliamentary Budget Officer (DPB).
The federal government has been discussing this new tax for several years. This was originally supposed to come into force almost two years ago and will therefore come into force retroactively. She will therefore receive the income earned since January 1, 2022.
“The DST applies at a rate of 3% to revenue from digital services offered in Canada that exceeds the threshold of C$20 million per calendar year,” the PBO explained.
According to data released last year by the Montreal Economic Institute (MEI), TSN could cost consumers between $1.1 billion and $3.3 billion per year.
“According to government projections, the tax would raise $3.4 billion over five years,” the MEI then stated.
“The limited information contained in the financial statements means that the estimate of income subject to DST is subject to a high degree of uncertainty. “We also expect companies in the target sectors to adapt their services and prices to the new law,” emphasized the parliamentary body.