This year, 2021, will be an unpredictable year for the economy in Canada due to the ongoing pandemic, the limited vaccine supply, and the varying approaches to economic recovery on both provincial and federal levels. Here are some changes to Canadian Business Taxes you can expect in 2021.
Extensions and Deferrals
Currently no official extensions of Corporate Tax Deadlines have been announced but this may change going forward, because of the unpredictability of the pandemic going forward. If the worst effects of the pandemic begin to subside do not expect these deferrals and be prepared to have your taxes ready for the standard deadlines.
Emergency Benefits and Corporate Taxes
The Canadian Emergency Wage Subsidy offered by the Federal Government has been extended to June 2021. As well a new payroll deduction formula has been issued by the Federal Government as of January 1st, 2021 that considers the various Covid-19 Benefits available to businesses. This includes The Canadian Emergency Wage Subsidy, The Temporary Wage Subsidy, No Requirements to Pay, and the Canadian Emergency Rent Subsidy.
In BC the proposed Carbon Tax Increase and PST being applied to E-Commerce Transactions and Sweetened Carbonated Drinks have been postponed indefinitely. If the worst of the Pandemic subsides in 2021 expect to see these changes back on the table for 2022.
If the worst effects of Covid-19 start to subside and stabilize expect rollbacks on a great deal of Covid-19 Specific Benefits as the year goes on.
The unpredictability of the economy moving into 2021 makes it difficult to estimate what changes to taxes may occur. Therefore, the most financially sound decision is to make sure you have your tax paperwork in order and are aware of what benefits you have been taking advantage of during the pandemic. If you have further questions or concerns about Corporate Taxes in 2021 be sure to contact us for all your tax and accounting needs for the new year.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.