COVID-19: Emergency Business Account & Wage Subsidy

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COVID-19: Emergency Business Account & Wage Subsidy

Greetings to all GTS clients!

Prime Minister Justin Trudeau made an announcement on March 27, 2020, additional new measures to support small businesses dealing with the economic impacts of the Covid-19 pandemic. Our federal government is planning to launch additional program providing up to $25B though eligible financial institutions so they can provide interest-free loans to small businesses who are desperate on liquid capital. It is an additional funding on top of the previously announced $40B through the BDC.

  1. Canada Emergency Business Account

  • Eligibility: CCPC (Corporation) or businesses with payrolls of less than $1M
  • Scale of Support: up to $40,000 loan
  • Interest: one-year interest free (Refund until December 2022)
  • The loan is in the form of Line of Credit
  • Quarter of the loan (up to $10,000) is eligible for complete forgiveness
  • Purpose: Rent expense and Working Capital

2. Wage Subsidy

  • Eligibility: CCPC or businesses who are paying salary, bonuses, or remuneration between March 15 to  June 20
  • Companies that have seen at least a 30% business revenue dropped
  • Companies with valid CRA Business number and payroll account
  • Period of Support: 3 months from March 15, 2020
  • Amount of Support: 75% of salary (up to $847 per week per employee)
  • Period of Application: 3 months from March 15, 2020

3. Extension of GST/HST payment period

  • Defer tax payments until  June 30, 2020
  • Eligibility: CCPC or businesses who are paying salary, bonuses, or remuneration

4. Canadian Emergency Response Benefit (CERB): $2,000 support

  • Apply individually through government portal; The application portal is scheduled to be available on April 6, 2020.
  • Eligibility: Refer to the previous Article.

In human history, mankind has overcome various major crisis by uniting together and sharing the constrained resources for our communities. Therefore, The Global Tax clients would surely overcome this crisis as well. Our Global Tax Services staffs and their families pray that our customers will overcome this difficult time together and well.

I wish the best to you and your family, and we shall communicate any important news and keep in touch. We will update yany news that will have impact to you, your families and your businesses.

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