Information about changes in Provincial and Federal Taxes for businesses and individuals.
Latest Update - January 12th, 2021: The CRA has started sending out T4A slips for taxable COVID-19 benefits received in 2020.
Latest Update - September 17th, 2020: The government announced tax incentives as part of B.C.'s Economic Recovery Plan, including:
The B.C. Government and Government of Canada are delivering financial relief for individuals and businesses dealing with the impact of COVID-19. Part of this support involves changing and deferring how provincial and federal taxes are collected.
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 tax credit for employers who create new jobs for B.C. workers or increase the payroll for existing low- or medium-income employees in the last quarter ending December 31, 2020.
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.
Payment deadline extension: The CRA is extending the payment due date for current year individual, corporate, and trust income tax returns, including instalment payments, from September 1st, 2020, to September 30th, 2020. Penalties and interest will not be charged if payments are made by the extended deadline of September 30th, 2020. This includes the late-filing penalty as long as the return is filed by September 3rd, 2020.
Interest on existing tax debt: The CRA is also waiving interest on existing tax debts related to individual, corporate, and trust income tax returns from April 1st, 2020, to September 30th, 2020 and from April 1, 2020, to June 30, 2020, for goods and services tax/harmonized sales tax (GST/HST) returns.
Federal business taxes: General Sales Tax (GST) and Harmonized Sales Tax (HST) remittances and customs duty payments are deferred to June 30th, 2020. The Federal government is allowing all businesses to defer, until after August 31st, 2020, the payment of any income tax amounts that become owing on or after March 18th, 2020 and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act.
No interest or penalties will accumulate on these amounts during this period. For self-employed individuals or those who have spouses or common-law partners that are self-employed, the deadline to pay any balance due for your individual federal income tax and benefit return has been extended from April 30th, 2020, to September 1st, 2020.
Filing returns: The filing date for 2019 income tax returns for individuals has been deferred until June 1st, 2020. However, recognizing the difficult circumstances faced by Canadians, the CRA will not impose late-filing penalties where a current year individual, corporation, or trust return is filed late provided that it is filed by September 30th, 2020.