​Large digital businesses should consider how they may be affected by new draft legislative proposals to implement a 3% digital services tax (DST). Under these proposals, businesses that earn revenue from certain digital services may be liable for the DST, effective for certain revenues earned as of January 1, 2022. Although the DST will generally apply for businesses that have global group revenue from all sources of €750 million or more in their fiscal period ending in the previous calendar year, as well as more than $20 million of "in-scope" revenue related to Canadian users for the particular calendar year, businesses with $10 million of "in-scope" revenue for a particular calendar year will also be required to register under these proposals. Finance advises that, although the DST will apply to certain revenue earned from online marketplaces, social media, online advertising and user data as of January 1, 2022, this new tax will not be imposed earlier than January 1, 2024, and only if an international multilateral treaty to implement other tax measures has not yet come into force (i.e., Pillar One of the OECD's two-pillar approach to tax reform).

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