News Share

The Tax Hub

Daily Tax Newsletter

Canada

15 April 2020

Responsive image

Canada Enacts Legislation for Emergency Wage Subsidy During COVID-19 Pandemic

Canada enacted legislation on 11 April 2020 for the introduction of the Canada Emergency Wage Subsidy (CEWS) to help businesses retain employees during the coronavirus (COVID-19) pandemic. The CEWS is provided to eligible employers for up to 12 weeks, retroactive to 15 March 2020.

The CEWS amount for a given employee on eligible remuneration paid for the period between 15 March and 6 June 2020 is the greater of:

  • 75% of the amount of remuneration paid, up to a maximum benefit of CAD 847 per week; and
  • the amount of remuneration paid, up to a maximum benefit of CAD 847 per week or 75% of the employee's pre-crisis weekly remuneration, whichever is less.

Eligibility is determined based on the change (reduction) in an eligible employer's monthly revenue, year-over-year, for the calendar month in which the period began. Alternatively, a comparison may be made with the average revenue earned in January and February 2020.  The claim periods and the required reduction in revenue are as follows:

  • Period 1: 15 March to 11 April - a 15% reduction of revenue in March 2020 as compared to March 2019 or compared to the average of January and February 2020
  • Period 2: 12 April to 9 May - a 30% reduction of revenue in April 2020 as compared to April 2019 or compared to the average of January and February 2020
  • Period 3: 10 May to 6 June - a 30% reduction of revenue in May 2020 as compared to May 2019 or compared to the average of January and February 2020

In addition to meeting the revenue reduction conditions for each period, employers may qualify for the CEWS for a period if they qualified for the prior period. This means, if the revenue conditions for Period 1 are met, the employer also automatically qualifies for the CEWS in Period 2, and if the revenue conditions for Period 2 are met, the employer also automatically qualifies for the CEWS in Period 3.

Click the following link for more information on the Canada Emergency Wage Subsidy webpage.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Crosss Border Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment Streams.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More