With the new year, Canada wants to introduce a tax on digital services. If the Canadian digital services tax is actually introduced, it will be the first of its kind in the world.

Image source: Pixabay

Who will be affected by the tax?

The tax would be levied on, among others, large companies that operate AI-based services for online markets, such as those that facilitate user interactions. Also affected are services that generate revenue in the online advertising services and social media sectors. Companies with annual revenues of less than €750 million are exempt from the tax. The tax rate is set at 3 percent, according to the proposed law and regulation on the Digital Services Tax Law.

Source: GTAI (german language)