New: Tax relief and support for Canadian businesses
With tariffs and ongoing trade uncertainty continuing to impact Canadian businesses, the federal government has announced several new support measures to help businesses navigate these challenges.
The Canada Revenue Agency (CRA) has implemented several tax relief initiatives aimed at easing cash flow concerns for businesses. Below, we’ve outlined those changes — and how it might affect (help) your business.
In response to recently imposed tariffs and the resulting economic impact on Canadian businesses, the Government of Canada has announced temporary tax relief measures aimed at easing financial pressure.
Here’s what you need to know:
Federal Tax Relief Highlights
The CRA is providing a welcomed tax relief for businesses with either GST/HST or corporate income tax (T2) accounts. They are extending payment deadlines to June 30, 2025. So between April 2 and June 30, 2025, the following temporary relief will be available for Canadian businesses:
✅ Defer GST/HST remittances and corporate income tax (T2) payments
✅ Waive interest on GST/HST and corporate instalments/arrears payments required during this period
✅ Provide interest relief on existing GST/HST and T2 balances
Important:
Filing deadlines remain the same. Businesses must continue to file their GST/HST and T2 returns by the usual due dates to remain compliant.
Interest will resume as of July 1, 2025.
You can find the full CRA announcement here.
Provincial announcements
Quebec to harmonize with CRA on corporate income tax and QST
Revenu Québec has announced its intent to harmonize with the CRA’s temporary tax relief for businesses.
Full details of the Quebec government announcement can be found here.
Ontario to provide select tax relief for businesses
On April 7, 2025, the Ontario government announced it will grant interest and penalty relief under 10 business-focussed tax programs, including:
Employer Health Tax,
Insurance Premium Tax,
Gasoline Tax,
Fuel Tax,
Mining Tax,
Tobacco Tax,
International Fuel Tax Agreement,
Beer, Wine & Spirits Tax,
the Retail Sales Tax on Insurance Contracts and Benefit Plans and
the Race Tracks Tax.
Remittances under these provincially administered tax programs will be deferred for six months, from April 1, 2025, to October 1, 2025. All taxes owed must be paid by October 1, 2025.
The Ontario government also announced that an additional $2 billion in rebates will be issued through the Workplace Safety and Insurance Board (WSIB) for safe employers, consistent with rebates distributed in March.
Full details of the announcement can be found here.
Manitoba extends tax payment deadlines
On March 10, 2025, the Manitoba government announced an interest and penalty-free payment deferral for retail sales tax (RST) return remittances until June 20, 2025. The deferral is for the February, March and April 2025 return periods and does not apply to debts established prior to February. All returns must continue to be filed by the standard due dates. Businesses that file on a quarterly basis are also eligible to defer the March quarterly RST return due April 22, 2025, until June 20, 2025.
The government announced a similar deferral for Health and Post-Secondary Education Tax Levy (HE Levy) return remittances until June 15, 2025. The deferral applies for February, March, and April 2025 monthly return periods. Returns for these periods must continue to be filed by the required due dates.
Any amounts owing on filing of a 2024 HE Levy Annual Report are not included in the deferral. Moreover, the deferral does not apply to outstanding amounts established before February.
Final Thoughts
For businesses who may be affected, these extensions offer a tax payment deferral strategy and can enhance cashflow for a short period, but it is important to remember that your filings are still due by their regular deadlines, and the relief period is set to end as of July 1, 2025.
For Small-Books clients, our job is to stay ahead of these updates so you don’t have to.
As a client, you can rest assured that:
We’re tracking all federal and provincial relief programs
We’ll apply any eligible interest relief to your accounts automatically
We’ll keep you compliant by ensuring your filings go out on time
Have questions about how these measures might affect your business? We’re here to help. Reach out to your Small-Books team any time — your business finances are in good hands.
What is Small-Books?
The online bookkeeping and tax filing service that gives you a dedicated bookkeeper supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of taxes—for good. Your team keeps your finances up-to-date and can handle all of your tax filing needs; from HST, to payroll, to income tax - so you can say goodbye to tax season stress, forever!
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Small-Books assumes no liability for actions taken in reliance upon the information contained herein.
