Letter from Minister of Finance and National Revenue François-Philippe Champagne to Digital Services Tax Taxpayers

On June 29, 2025, our government announced its intention to rescind Canada’s Digital Services Tax (DST) as an important step in support of the ongoing and complex negotiations on a new economic and security partnership with the United States. I am now writing to businesses that had registered with the Canada Revenue Agency (CRA) for a DST program account and that made a payment in anticipation of DST obligations, to provide an update on the status of this commitment.

As Canada’s Minister of Finance and National Revenue, I have committed to bring forward legislation at the earliest opportunity to retroactively repeal the Digital Services Tax Act effective as of June 20, 2024, the date of its original enactment. This legislation will also provide that DST payments received by the Canada Revenue Agency will be refunded with interest, at the rate that is generally applicable to corporate tax refunds, payable from the day the payment was received.  

I trust that this information is helpful for your purposes.

Sincerely, 

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The Honourable François-Philippe Champagne,
Minister of Finance and National Revenue