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Ontario Tax Relief Programs

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. 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.
  • The exemption will return to $490,000 on January 1, 2021 and will be adjusted according to inflation again in 2024 as per the Ontario Consumer Price Index.

Eligibility

How to Apply

  • The Ministry of Finance will be reviewing all 2020 EHT returns and correcting the returns for the new exemption level.

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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.

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