A version of this article was previously published by KPMG LLP (Canada).
Ontario’s 2020 economic and fiscal update was delivered on March 25, 2020 and includes new measures that respond to economic concerns as a result of COVID-19. Although the provincial government originally planned to deliver its 2020 provincial budget on this date, Ontario instead provided the update and delayed the budget stating it intends to deliver a multi-year Ontario budget by November 15, 2020. The update introduced a new 10% refundable corporate tax credit, provided five months of penalty and interest relief for Ontario businesses that miss any filing or remittance deadlines for certain provincial taxes, temporarily increased the Employer Health Tax (EHT) exemption, and deferred employers’ payments of premiums to Ontario's Workplace Safety and Insurance Board (WSIB) for up to six months.
Bill 188, Economic and Fiscal Update Act, 2020 (i.e., Ontario's budget implementation bill) received Royal Assent on March 25, 2020. It enacted the new refundable corporate tax credit, as well as certain personal tax and indirect tax measures that Ontario announced in the update.