Support for People and Businesses to Improve Cash Flow
Ontario is making $10 billion available to improve cash flow for people and businesses during this challenging economic time. Through provincial tax deferrals and other measures, relief will be targeted to those impacted directly by COVID-19.
Highlights include:
- Cutting taxes by $355 million for roughly 57,000 employers through a proposed temporary increase to the Employer Health Tax (EHT) exemption (from $490,000 to $1 million for 2020). With this plan, more than 85 per cent of private-sector employers will not pay EHT in 2020. The exemption would return to its current level of $490,000 on January 1, 2021.
- Providing a five-month interest and penalty-free period for the majority of provincially administered taxes to help support Ontario businesses when they need it the most.
Tax filing and remittance deadlines will remain the same. However, beginning April 1, 2020, penalties and interest will not apply to Ontario businesses that miss a filing or remittance deadline under select provincial taxes. This will relief will continue for a period of five months.
This measure applies to:
- Employer Health Tax
- Tobacco Tax
- Fuel Tax
- Gas Tax
- Beer, Wine & Spirits Tax
- Mining Tax
- Insurance Premium Tax
- International Fuel Tax Agreement
- Retail Sales Tax on Insurance Contracts and Benefit Plans
- Race Tracks Tax
- Allowing employers to defer Workplace Safety and Insurance Board (WSIB) premiums, penalty and interest-free, for up to six months.
- Making electricity bills more affordable for eligible residential, farm and small business consumers through a $1.5 billion increase in electricity cost relief. The government is also setting electricity prices for time-of-use customers at the lowest rate 24 hours a day for 45 days.
- Deferring the upcoming quarterly (June 30) remittance of Education Property Tax to school boards by municipalities for 90 days. This will provide municipalities with the flexibility to provide property tax deferrals of over $1.8 billion to local residents and businesses while the government adjusts payments directly to the school boards ensuring they receive their funding.