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

Measures for businesses

  • Ontario Film and Television Tax Credit: Extends certain deadlines for claiming this credit. The relief is available for productions for which eligible expenditures were incurred prior to March 15,2020, and were not completed, certified by Ontario Creates or deemed ineligible for the tax credit by Ontario Creates before March 15,2020.
  • Ontario Production Services Tax Credit: Will allow certain companies an additional 24 months to exceed minimum spending requirements to qualify for this credit (e.g. $1 million for feature films). This measure will apply to productions for which eligible expenditures were incurred in Ontario in taxation years ending in 2020 and 2021.
  • Ontario Interactive Digital Media Tax Credit: Will allow eligible expenditures for this credit to be incurred during the 61-month period prior to product completion (up from 37 months). This relief applies to products that were not completed before March 15, 2020, and for which eligible labour expenditures were incurred in the 2020 taxation year.
  • Ontario Book Publishing Tax Credit: Will waive the eligibility requirement for this credit that a literary work must be published in a bound edition of at least 500 copies. This measure applies for the 2020 and 2021 taxation years.
  • Research & Development credit: Will extend the reporting period to claim an Ontario R&D Tax Credit. Corporations with tax year-ends from September 13, 2018, to December 31, 2018, would have an additional 6 months to file a tax credit claim and those with tax year-ends from January 1, 2019, to June 29, 2019, would have until December 31, 2020, to file a claim.
  • Municipality’s property taxes: Will allow municipalities to reduce property taxes for small business beginning in 2021. Ontario will also consider matching these municipal property tax reductions.
  • Business Education Tax Rates: Will reduce the Business Education Tax rates for businesses subject to the highest rates to 0.88% for both commercial and industrial properties beginning in 2021.
  • Employer Health Tax: The exemption will be permanently increased. See the description of this fiscal measure under the March 2020 budget above.

Measures for individuals

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