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Canada

1 December 2020

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Canada Enacts Additional COVID-19 Support Measures

Canada has published the Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy), which received royal assent (was enacted) on 19 November 2020. The Act includes measures to provide targeted support for businesses hard-hit by COVID-19 and help them get through the second wave of the virus. As previously reported, the main measures are as follows:

  • The new Canada Emergency Rent Subsidy (CERS), which provides direct and easy-to-access rent and mortgage interest support to tenants and property owners until June 2021 for qualifying organizations affected by COVID-19. The new rent subsidy supports businesses, charities, and non-profits that have suffered a revenue drop by providing support up to a maximum of 65% of eligible expenses until 19 December 2020.
  • The new Lockdown Support, which would provide an additional 25% through the Canada Emergency Rent Subsidy for qualifying organizations that are subject to a lockdown and must shut their doors or significantly limit their activities under a public health order issued under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws). Combined with the CERS, this means that hard-hit businesses subject to a lockdown could receive rent support of up to 90%.
  • The extension of the Canada Emergency Wage Subsidy until June 2021, which continues to protect jobs by helping employers keep employees on the payroll and re-hire their workers. The wage subsidy remains at the current rate of up to 65% of eligible wages until 19 December 2020.

For more information on these and other COVID-19 support measures, click the following link for Canada’s COVID-19 Economic Response Plan webpage.

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