COVID-19 Tip #4: Deferral of Certain Tax Payments
Note: The following information is based on the guidance provided by the federal government. For further details see the government’s Frequently Asked Questions, Backgrounder and Deferral of GST/HST Tax Remittances
What payments can I defer?
Income tax, GST/HST and customs duties can be deferred.
Income tax amounts that become owing by a business between March 18, 2020 and September 2020 can be deferred until August 31, 2020. This applies to tax balances due, as well as instalments, under Part I of the Income Tax Act.
GST/HST and customs duties can be deferred by businesses, including self-employed individuals, until June 30, 2020.
The deferral applies to:
- GST/HST remittances for the February, March and April 2020 reporting periods for monthly filers;
- GST/HST remittances the January 1, 2020 through March 31, 2020 reporting period for quarterly filers; and
- for annual filers, the amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.
For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.