Information about changes in Provincial and Federal Taxes for businesses and individuals.
Latest Update - March 30th, 2021: Applications are now open online for the Increased Employment Incentive (IEI). This credit sets aside up to $190 million for businesses that were able to hire new workers, hire back people who were let go or increase workers’ hours during the last three months of 2020. It is available to all employers in B.C., except for public institutions and political parties.
On this page:
Planned tax changes: The scheduled April 1st, 2020 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, have been delayed until April 2021.
Provincial Business Taxes: Businesses with a payroll over $500,000 can defer their employer health tax payments until September 30th, 2020. Businesses with a payroll under this threshold are already exempt from the tax. Provincial business tax filing and payment deadlines have also been extended until September 30th, 2020 for:
- Provincial Sales Tax (PST)
- Municipal and Regional District Tax
- Tobacco Tax
- Motor Fuel Tax
- Carbon Tax
The scheduled April 1st, 2020 increase to the provincial carbon tax, as well as the new PST
registration requirements on e-commerce and the implementation of PST on sweetened
carbonated drinks, will be delayed with timing to be reviewed by September 30th, 2020.
Reduced School Tax Rates for Businesses: The Province further reduced the school property tax rate for commercial properties to achieve an average 25% per cent reduction in the total property tax bill for most businesses. This enhances the 50 per cent reduction to the provincial school property tax rate for classes 4, 5 and 6 announced as part of the COVID-19 Action Plan.
Enhanced B.C. Climate Action Tax Credit: The Province of BC is increasing and expanding the BC Climate Action Tax Credit in July 2020. The payments made in July 2020, October 2020, January 2021, and April 2021 are based on your adjusted family net income for the 2019 tax year. If you are eligible for the Climate Action Tax Credit, you will receive the payment from the Canada Revenue Agency.
B.C. PST Rebate on Select Machinery and Equipment: A temporary provincial sales tax (PST) program where corporations may apply to receive an amount equal to the PST they paid between September 17, 2020 and September 30, 2021 on qualifying machinery and equipment.
B.C. Increased Employment Incentive: A one-time refundable tax credit for employers who create new jobs for B.C. workers or increase the payroll for existing low- or medium-income employees. The deadline to apply is December 31, 2021.
Employer Health Tax (EHT): Employers required to make quarterly instalment payments for the 2020 calendar year will be able to defer these payments as follows:
- June 15, 2020 deadline extended to December 31, 2020
- September 15, 2020 deadline extended to January 31, 2021
- December 15, 2020 deadline extended to February 28, 2021
The remaining tax payable is due with the EHT return by March 31, 2021. Businesses with a payroll under $500,000 are exempt from the tax.
The home owner grant reduces the amount of property tax paid on a principal residence. In 2021, the home owner grant application process has changed, but program details and eligibility requirements remain the same.
From October 20th, 2020, families in B.C. can receive the B.C. Child Opportunity Benefit, a refundable personal income tax credit that provides an enhanced monthly payment to parents of children up to the age of 18. The maximum amount families may receive each year is:
- $1,600 for a family’s first child
- $1,000 for a second child
- $800 for each subsequent child under the age of 18
See all Government of Canada changes to taxes and benefits: CRA and COVID-19.
Find information on free tax clinics.
2020 Income Tax Filing
Latest Update - February 9th, 2021: Government Announces Interest Relief on 2020 Income Tax Debt Due to COVID-19 Related Income Support
The Government of Canada will provide targeted interest relief to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30th, 2022.
To qualify for targeted interest relief, individuals must have had a total taxable income of $75,000 or less in 2020 and have received income support in 2020 through one or more of the following COVID-19 measures:
- the Canada Emergency Response Benefit (CERB);
- the Canada Emergency Student Benefit (CESB);
- the Canada Recovery Benefit (CRB);
- the Canada Recovery Caregiving Benefit (CRCB);
- the Canada Recovery Sickness Benefit (CRSB);
- Employment Insurance benefits; or
- similar provincial emergency benefits.
The Canada Revenue Agency (CRA) will automatically apply the interest relief measure for individuals who meet these criteria.
Additionally, any CRA-administered credits and benefits normally paid monthly or quarterly, such as the Canada Child Benefit and the goods and services tax/harmonized sales tax credit will not be applied to reduce individuals’ tax debt owing for the 2020 tax year.
Home Office Expenses for Employees
Find information on the recent changes to claiming work space in the home expenses: Home office expenses for employees.
This infographic also explains the changes.
Use this calculator to work out your home office expenses.