Tech · Crypto Briefing
Canada Revenue Agency refunds $148 million to 30 US companies after scrapping digital services tax
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
Canada's digital services tax lasted barely a year before political pressure killed it, and now Ottawa is writing checks to make it go away.
Key facts
- The DST, a 3% levy on digital services revenue from large technology firms, collected $647 million in total before it was suspended on June 30, 2025
- Canada is handing back $148 million to 30 US-based companies after repealing the digital services tax (DST) that briefly made it one of the most aggressive jurisdictions for taxing Big Tech
- Of the $647 million collected, $358 million was applied to cover other tax liabilities the companies already owed
- The DST targeted companies with global revenues of at least 750 million euros and Canadian digital revenue exceeding $20 million
Summary
Canada is handing back $148 million to 30 US-based companies after repealing the digital services tax (DST) that briefly made it one of the most aggressive jurisdictions for taxing Big Tech. The DST, a 3% levy on digital services revenue from large technology firms, collected $647 million in total before it was suspended on June 30, 2025. The DST targeted companies with global revenues of at least 750 million euros and Canadian digital revenue exceeding $20 million. The repeal received royal assent on March 26, 2026, after the tax became a flashpoint in US-Canada trade negotiations.