Canada withdraws digital services tax proposal amid US talks
Source: US, Canada to resume trade talks after Ottawa drops digital tax (2025-07-01)
Canada has decided to rescind its digital services tax proposal as part of ongoing negotiations with the United States. The move aims to facilitate progress in trade discussions and address concerns raised by the U.S. government regarding digital taxation policies. The decision comes ahead of planned trade talks between the two countries, with officials emphasizing the importance of reaching a mutually agreeable solution. Canada’s withdrawal of the tax proposal signals a willingness to collaborate and potentially align with international efforts to regulate digital services taxation.