Tax Measures Under Canada’s COVID-19 Economic Response Plan

Measures for businesses

  • The Government of Manitoba has introduced the following hiring programs aiming to ease the road ahead to recovery for Manitoba businesses:
    • The Manitoba Back to Work This Summer[106] initiative covers 50 percent of wage costs for up to 10 weeks, between June 1 and August 30, 2020. The application deadline is August 1, 2020.
    • The Back to Work[107] in Manitoba initiative covers 50 percent of wage costs, between July 16 and December 31, 2020, up to a maximum of $5,000, per employee. Employers are supported to hire up to 20 employees to a maximum of $100,000. The application deadline is December 1, 2020.
    • The Summer Student Recovery Jobs Program[108] provides wage subsidies to employ students aged between 15 to 29. Employers are eligible to receive a reimbursement of $7 per hour, up to a maximum of $5,000 per student employed between May 1 and September 4, 2020, and up to a maximum of five students. Employers must submit the application at the end of the employment period, and no later than October 1, 2020.
    • The Non-profit Summer Student Incentive Grant[109] provides an addition $6,000 to approve applicants that hire at least one full-time equivalent student under the Manitoba Summer Student Recovery Jobs Program for at least eight weeks. Charities and non-profit organizations will be contacted directly to confirm their interest and do not need to apply for the grant if they have applied for the jobs program.
  • Retail sales tax[110] (“RST”) returns for small and medium businesses with monthly RST remittances of no more than $10,000 per month that would normally be due on April 20, May 20, June 22, July 20, August 20 and September 21 will now be due on October 20, 2020. Businesses that file on a quarterly basis that have a due date of April 20 and July 20 will now have the due date extended to October 20, 2020. Businesses that qualify for the extension that were not able to file and remit their February sales tax return by the March 20 due date will not be assessed a late filing penalty and interest will not be applied until after October 20, 2020. Interest will continue to apply on all outstanding tax debts established prior to the March remittance deadlines.
  • Health and Post Secondary Education Tax Levy[111] (“HE Levy”) returns for small and medium businesses with monthly HE Levy remittances of no more than $10,000 per month that would normally be due on April 15, May 15, June 15, July 15, August 17 and September 15 will now be due on October 15, 2020. Businesses that qualify for the extension that were not able to file and remit their February HE Levy tax return by the March 16 due date will not be assessed a late filing penalty and interest will not be applied until after October 15, 2020. Interest will continue to apply on all outstanding tax debts established prior to the March remittance deadlines. The Department of Finance and Taxation will consider flexible repayment options for businesses with remittances of more than $10,000.
  • The deadline for filing provincial tax returns and paying any amounts due was extended to August 31, 2020. The Government of Manitoba is willing to extend this date until October 1, 2020, if the federal government agrees with the measure.
  • The Government of Manitoba will provide a $6,000 non-repayable, interest-free loan[112] to small and medium-sized businesses that do not qualify for federal programs. The loan will be forgiven on December 31, 2020, if the recipient attests at that time the business has not received any major non-repayable COVID-19 federal supports. If the applicant has received benefits under a federal COVID program, then the loan will be added to the recipient’s 2020 tax bill.
  • On November 10, 2020[113] the Government announced the new Manitoba Bridge Grant[114]. It will provide a $5,000 immediate one-time payment to small and medium-sized businesses, not-for-profit and charitable organizations that were directly ordered to temporarily cease operations or close their publicly accessible physical locations by Manitoba COVID-19 public-health orders in effect on November 12, 2020. The Manitoba Bridge Grant has the capacity to be extended automatically to Jan. 1, 2021, to provide an additional $5,000 to each organization should these public health orders remain in place. The deadline for application is December 15, 2020.

Measures for individuals

  • The deadline for filing provincial tax returns and paying any amounts due is extended to August 31, 2020. The Government of Manitoba is willing to extend this date until October 1, 2020, if the federal government agrees with the measure.
  • The Government of Manitoba is working with municipal partners to ensure municipalities do not charge interest on provincial education taxes and school division fees. The province is encouraging municipalities to do the same with respect to municipal taxes.
  • The Seniors Economic Recovery Credit[115] provides a $200 one-time, refundable tax credit to Manitoba seniors facing additional costs due to the COVID-19 pandemic such as grocery deliveries. The credit is available to people aged 65 and over, who live in Manitoba in 2020 and who file an income tax return as a Manitoba resident.
  • The Disability Economic Support Program[116] provides a one-time $200 benefit to lower-income Manitobans with disabilities receiving Employment and Income Assistance benefits. Cheques are mailed automatically and there is no need to apply to the program. Individuals who are receiving Employment and Income Assistance and qualify as a person with a disability are eligible. Such financial support will not be considered taxable income and will not affect any other benefits a person may receive.
  • The Manitoba Job Restart Program[117] provides a taxable financial benefit to a maximum of $2,000 to Manitobans who safely return to work for a cumulative 30 hours per week with one or more eligible employers and voluntarily stop collecting CERB, CESB or similar federal COVID-19 financial support programs.
  • The Manitoba Risk Recognition Program provided a one-time payment to low-income, essential, front-line workers during the period of March 20 to May 29, 2020. Online applications closed on June 29, 2020.
  • On October 13, 2020[118], the government announced that Manitobans no longer have to pay the provincial sales tax when they get their personal income tax return prepared. The exemption took effect immediately.

Other measures

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

Share