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USTR Opposes Canada’s Digital Services Tax Act Proposal

February 22, 2022

WASHINGTON – The Office of the United States Trade Representative (USTR) has filed comments with the Canadian Government raising serious concerns about Canada’s plan to enact a Digital Services Tax (DST).

In these comments, the United States urges Canada to abandon any plans for a unilateral measure and instead redouble its commitment to the rapid implementation of Pillar One of the October 8 OECD/G20 agreement and the negotiation of a multilateral convention.

USTR also discussed serious concerns about measures that single out American firms for taxation while effectively excluding national firms engaged in similar lines of business.

Should Canada adopt a DST, USTR would examine all options, including under our trade agreements and domestic statutes.  USTR’s comments on Canada’s proposed DST can be found here.