COVID-19 | Governmental Measures

Last update: March 31, 2020, 12:20 p.m.

1. Federal and Quebec corporate income tax payments falling due from today until August 31, 2020: can be deferred until September 1, 2020 without interest nor penalties. This applies for income taxes balances owing and for installments.
2. Federal and Quebec corporate income tax returns that are due after March 18, 2020: can be delayed until June 1, 2020.
3. GST/HST/QST returns and payments for the period of March, April and May: can be delayed until June 30, 2020 as announced by Revenue Quebec in Information Bulletin 2020-5, although the Federal announcement delayed payments but was silent on the filing of federal sales tax returns.
4. Payments for Custom duty and Sales tax for importers for the statement of accounts of March, April and May:  extended to June 30, 2020.
5. Payroll deduction at source remittances: not delayed.
6. Non-resident tax withholding remittance:  not delayed.
7. Production of the NR4 forms for 2019:  extended until May 1, 2020.
8. Federal and Quebec Income Tax Returns for Partnerships:  extended until May 1, 2020.
9. Introduction of a federal government wage subsidy of up to 75% for qualifying businesses for up to 3 months retroactive to March 15, 2020. Businesses, large or small, are eligible if sales have fallen by 30% or more due to the COVID-19 situation. Not for profits and Registered Charities are also eligible. The subsidy covers the first 75% of salaries up to a maximum annual salary of $58,700 (the maximum subsidy is $847 per employee per week for those earning $1,129 per week or higher). More details will be announced on March 31.
10. Employment Insurance (EI) Work Sharing Program: enhanced by extending eligibility to 76 weeks, easing requirements and streamlining the application process. Provides EI benefits to workers who reduce their normal working hours due to conditions beyond control of the employer.
    See RELATED: COVID-19 EMPLOYERS FAQ below.
11. Income and sales tax audits on SMEs: postponed for 4 weeks.

1. The new Canada Emergency Business Account will provide interest free loans of up to $40,000 to small businesses and not-for-profits to help cover their operating costs.  Eligible organizations are those who paid between $50,000 and $1M in total payroll in 2019.  25 % of the loan to a maximum of $10,000 would be forgiven if the loan is repaid by December 31, 2022.  The loan will be provided by financial institutions with the cooperation of Export Development Canada.  More details to come at a later date from the government.
2. The new Co-Lending Program will allow banks and the Business Development Bank of Canada to co-loan term loans to SMEs of up to $6.25M for their operational cash flow requirements.  Businesses should contact their financial institutions for more information.
3. Export Development Canada can provide loan guarantees to eligible businesses of up to $5M to ensure companies have access to cash.  Businesses should contact their financial institution for more information.
4. Business Credit Availability Program: the Business Development Bank of Canada and Export Development Canada will provide more than $10 billion in support and work with private sector lenders to coordinate credit solutions for businesses.
5. Businesses in Quebec, with some exceptions, also have access to the ESSOR loan program sponsored by Investissement Quebec for amounts in excess of $50,000 for businesses that are having temporary cash-flow issues due to the COVID-19.

For businesses whose liquidities are affected by the repercussions of COVID-19

This new emergency funding measure provides ad hoc and exceptional support for businesses affected by the repercussions of COVID-19.

Eligible Businesses

This financial assistance is available to businesses operating in Québec, including cooperatives and other social economy enterprises with commercial activities. Eligible businesses are those that find themselves in a precarious situation and temporary difficulty as a result of COVID-19. They must show that their financial structure offers realistic prospects for profitability.

Eligible Projects

Businesses must show that their cash flow issues are temporary and that the liquidity shortage stems from:

• A problem involving the supply of raw materials or products (goods or services)
• An inability, or a substantially decreased ability, to deliver goods, products or services

Applications will be reviewed on a case-by-case basis, according to the business’s circumstances and Investissement Québec’s management practices.

Eligible Industries

All industries are eligible, except for the following:

• Weapons manufacturing or distribution
• Games of chance and gambling, combat sports, racing and other similar activities
• Production and sale of tobacco and drugs along with services related to their use, except for projects involving pharmaceutical-grade products approved by
• Health Canada and having a DIN, or their ingredients, as well as R&D projects licensed by Health Canada
• Any activity whose main purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, human rights advocacy, etc.)
• Any other activity that may offend public morals.

Details of Financial Assistance

• A loan guarantee is the preferred form of financing. Financing can also take the form of a loan from Investissement Québec.
• Investissement Québec aims to work in close cooperation with financial institutions and federal authorities in order to share risks
• The minimum funding amount is $50,000.
• Refinancing is prohibited.
• This measure is designed to shore up the business’s working capital.

Special conditions may apply.

1. Charities with a Form T3010: for Registered Charity Information returns due between March 18, 2020 and December 31, 2020:  filing deadline extended to December 31, 2020.
2. The new Canada Emergency Business Account will provide interest free loans of up to $40,000 to not-for-profits to help cover their operating costs.  Eligible organizations are those who paid between $50,000 and $1M in total payroll in 2019.  25% of the loan to a maximum of $10,000 would be forgiven if the loan is repaid by December 31, 2022.  The loan will be provided by financial institutions with the cooperation of Export Development Canada.  More details to come at a later date from the government.
3. The new 75% wage subsidy is available for Not-for-Profit and Registered Charities.

1. Income tax return for individuals: filing due date for 2019 extended to June 1, 2020.
2. Income tax return for trusts: filing due date for 2019 extended to May 1, 2020.
3. Income tax balance owing and installments for individuals and trusts: payments that would be due from now to August 31, 2020 can be deferred until September 1, 2020 without interest nor penalties.
4. Registered Retirement Income Fund (RRIF): minimum withdrawal for 2020 can be reduced by 25% in recognition of volatile market conditions.
5. The Canada Child Benefit will pay an extra $300 per child for 2019-2020 with the increase appearing on the scheduled May 2020 payment.
6. A special one-time payment of almost $400 for single individuals and close to $600 for couples will by paid in May through the Goods & Services Tax credit.
7. Canadian banks will offer mortgage support to Canadians facing financial hardships due to the Covid-19 including flexibility for a mortgage deferral.  Contact your financial institution for more information.
8. The new Canada Emergency Response Benefit will provide a taxable payment of $2,000 per month for up to 4 months and will be accessed by a secure web portal, starting in early April.  Eligible Canadians include:
   • Workers who must stop working due to COVID-19 and do not have access to paid leave or other income support.
   • Workers who are sick, quarantined or taking care of someone who is sick with COVID-19.
   • Working parents who must stay home without pay to care of children that are sick or need additional care because of school and daycare closures.
   • Workers who are still employed but unable to work due to Covid-19 and are no longer paid
   • Wage earners and self-employed individuals, including contract workers who would not otherwise be eligible for Employment Insurance.
9. Payments on Canada student loans will be deferred until September 30, 2020, interest free.

1. Taxpayers to receive up to $1,200, with joint filers eligible to receive as much as $2,400 with an additional $500 for every child. Payments will be gradually phased out for individuals who make more than $75,000 and joint filers that make more than $150,000. Payments are completely phased out for individuals who make more than $99,000 and joint filers that earn more than $198,000.
2. $300 Billion for loan guarantees for small businesses
3. $150 Billion for large businesses excluding airlines
4. $50 Billion in loan guarantees for passenger air carriers, and
5. $8 Billion for cargo air carriers
6. Individuals can defer filing their 2019 personal tax returns until July 15^th,2020.
7. Individuals and corporations may defer making estimated tax payments until October15th,2020.
8. Penalties on early withdrawals up to $100,000 from qualified retirement plans for coronavirus related distributions will be waived.
9. Increased incentives for making charitable contributions in 2020.
10. Employers may defer payroll tax payments until 2021 and 2022.
11. Businesses will be permitted to carry back losses to offset against five years of prior taxable income.
12. Limitations on interest deductions will be relaxed.