SIIA Joins Organizations in Urging Prompt U.S. Action Against Canada’s Digital Services Tax

The Software & Information Industry Association (SIIA) joined 10 other organizations in urging the U.S. to take prompt action against Canada’s imminent implementation of a three percent digital services tax (DST), which will primarily impact U.S. firms. With the DST set to become law through Bill C-59, the tax is estimated to cost U.S. exporters and the tax base up to $2.3 billion annually and lead to significant job losses. The organizations argue that the retroactive nature of the tax undermines tax certainty and deters investment, emphasizing that the USTR should initiate dispute settlement procedures under the USMCA. The letter highlights the broader negative implications of the DST on U.S. startups, small businesses, and consumers, and urges a robust response to protect U.S. business interests and uphold international tax agreements.