Note: Bill C-9 has not officially been passed as of the date this article was posted.
Bill C-9 is in the process of being amended and is receiving its first reading in the House of Commons. If passed, this amendment will extend the Canada Emergency Wage Subsidy (“CEWS”) and create the Canada Emergency Rent Subsidy (“CERS”).
Canada Emergency Wage Subsidy:
The CEWS extension will continue up to June 30, 2021 and includes the following details:
Canada Emergency Rent Subsidy:
Qualifying rent includes the lesser of $75,000 or the total of all rent amounts paid for a real or movable property for a rental agreement entered into prior to October 9, 2020, in respect of the qualifying period, less any rent received from third parties for the occupation of the property (sublets).
In the case of a corporately owned building, or a building rented from related parties, the qualifying rent consists of:
Applications for the CERS must be filed within 180 days of the end of the qualifying period.
The rent subsidy is calculated as follows:
There is also a rent top-up subsidy that is available if your place of business was closed due to a public health restriction and some or all the activities of the business have stopped for at least one week. This top up is 25% of your qualifying rent amounts pro-rated for the time your business was closed over the total period. For example, if the business was closed for 2 weeks the calculation would be 25% x 14 / 28 or 12.5%.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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