The Province of Ontario announced a fiscal update on March 25, 2020. In addition to numerous personal relief measures and increased funding for health care resources, the following measures in response to COVID-19 in support of businesses are notable.
Tax payment relief
Interest or penalties will not apply until 31 August 2020 to deferred payments or filings for a number of provincial taxes, including:
- employer health tax (the exemption for employers with Ontario payroll of less than CAD 5M will also be temporarily raised from CAD 490,000 to CAD 1,000,000 of payroll for 2020)
- mining tax
- insurance premium tax and retail sales tax on insurance contract and benefits plans
Regional opportunities investment credit
- A 10% refundable corporate income tax credit will be available for investments in excess of CAD 50,000 and up to CAD 500,000 by Canadian-controlled private corporations in Class 1 (rental building) or Class 6 (buildings) in Northern Ontario and certain areas in Southern Ontario that become available for use on or after March 25, 2020.
Sales Tax Relief (Federal and Quebec)
- On 27 March 2020, Prime Minister Trudeau announced that businesses can defer GST/HST net tax remittances, as well as remittances of duties and taxes owed on imports, until June, without penalty or interest implications.
- Quebec also announced that it will implement the same deferral in respect of the Quebec Sales Tax.