The Government of Ontario is implementing tax relief programs to assist businesses and employers during COVID-19. The following provides a brief summary of these government programs, including details relating to eligibility, how to apply and general terms and conditions, as applicable. We will endeavour to update this page on a daily basis. However, for a complete and up to date description, please see the link to the applicable program webpage contained herein. Should you have any questions, please feel free to reach out to a Goodmans lawyer. Programs include:
Employer Health Tax Relief
Program Overview
- The Ontario Government has temporarily increased the Employer Health Tax (EHT) exemption for 2020 from $490,000 to $1 million. In the 2020 Ontario Budget, the government announced it was making the EHT payroll exemption increase permanent.
- Along with doubling the exemption, the instalment threshold has also been doubled from $600,000 to $1.2 million as of the 2021 taxation year.
- This increase will assist businesses in supporting the well-being of their employees and their continuing operations by providing up to $9,945 in relief.
Eligibility
- To be eligible, employers must be eligible employers as defined under the Employer Health Tax Act.
How to Apply
- The Ministry of Finance will be reviewing all 2020 EHT returns and correcting the returns for the new exemption level.
Regional Opportunities Investment Tax Credit
Program Overview
- The Regional Opportunities Investment Tax Credit is a 10% refundable corporate income tax credit for capital investments. The tax credit is available for expenditures in excess of $50,000 and has a cap of $500,000.
Eligibility
- The tax credit is available to Canadian-controlled private corporations who make qualifying investments that become available for use on or after March 25, 2020.
- Examples of qualifying investments are expenditures for constructing, renovating, or acquiring eligible commercial and industrial buildings and other assets in designated Ontario regions.
How to Apply
- Businesses can apply for this tax credit when filing their tax return.
- The Ministry of Finance will be reviewing all 2020 EHT returns and correcting the returns for the new exemption level.
