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March 25, 2020

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Wage Subsidies for Small Business and Non-profits

What it is:

To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide eligible small employers.

The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration.

Who is eligible:

  • Corporations eligible for the small business deduction
  • Non-profit organizations and charities

For more information on the above, please visit: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

Tax Filing

What it is:

The Canada Revenue Agency will allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. 

This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. 

The Canada Revenue Agency will not contact any small or medium (SME) businesses to initiate any post assessment GST/HST or Income Tax audits for the next four weeks. For the vast majority of businesses, the Canada Revenue Agency will temporarily suspend audit interaction with taxpayers and representatives.

For more information:

The Liaison Officer service offers help to owners of small businesses to understand their tax obligations. Traditionally available in-person, this service is now available over the phone and will be customizing information during these challenging times by ensuring small businesses are aware of any changes such as filing and payment deadlines, proactive relief measures, etc.

Work Share Program

What it is:

The Government of Canada introduced temporary special measures that extend the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks across Canada for those businesses affected by the downturn in business due to COVID-19 and for the forestry and steel and aluminum sector.

Who is eligible:

If you are experiencing a downturn in business activity related to the global outbreak of COVID-19, and have:

  • WS agreements signed between March 15, 2020 and March 13, 2021
  • WS agreements that began, or ended between March 15, 2020 and March 14, 2021, and
  • WS agreements that ended between June 23, 2019, and March 14, 2020 and are in their mandatory cooling-off period

Access the Work-Sharing temporary special measures page for more details.

How to apply:

Please refer to the WS Applicant guide for the temporary special measures  for more information on how to complete your application.

Access to Credit

  1. The Business Credit Availability Program (BCAP) allow the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses.
  2. The Office of the Superintendent of Financial Institutions (OSFI) announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets, effective immediately. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.


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