News Share

The Tax Hub

Daily Tax Newsletter

United States-Canada

17 December 2021

Responsive image

USTR Warns Canada Over Plans to Introduce Digital Services Tax

The Office of the United States Trade Representative (USTR) has issued a statement concerning Canada's plans to introduce a 3% Digital Services Tax (DST) that would be imposed from 1 January 2024 if the treaty implementing the tax regime under the OECD global agreement (two-pillar solution) has not come into force. Canada's plans for the DST were confirmed on 14 December as part of the Economic and Fiscal Update 2021, including a Notices of Ways and Means Motion for the DST legislation. In response, the USTR issued the following statement:


Statement by USTR Spokesperson Adam Hodge on Canada's Digital Services Tax As Described in Canada's Notice of Ways and Means Motion to Introduce an Act to Implement a Digital Services Tax

"The Office of the United States Trade Representative (USTR) is concerned with Canada's announcement that it will continue to pursue a unilateral Digital Service Tax (DST). As noted in comments to Canada regarding the DST described in Canada's 2021 budget document, most DSTs have been designed in ways that discriminate against U.S. companies, as they single out American firms for taxation while effectively excluding national firms engaged in similar lines of business. USTR continues to strongly oppose any new DSTs adopted by our trading partners.

"The standstill on new digital services taxes prior to the implementation of Pillar One of the October 8 OECD/G20 agreement is an important part of the new architecture for international taxation, which Canada joined. That agreement will help end the race to the bottom over multinational corporate taxation by leveling the corporate tax playing field. Canada's proposed DST would create the possibility of significant retroactive tax liabilities with immediate consequences for U.S. companies.

"If Canada adopts a DST, USTR would examine all options, including under our trade agreements and domestic statutes."

Powerful Tax Tools


FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.


Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.


Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.


Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.


Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.



Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.


Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.


Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.


Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.


Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.


Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.


Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.


VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.


NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.


Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.


Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More