The challenge many businesses are facing due to COVID-19 is a drastic reduction in revenues coming in, while expenses and obligations still piling up to go out. To save our business community, part of the solution is to keep money in the business for as long as possible.
That’s why the tax deferrals announced by the federal and provincial government are so important. By delaying when businesses need to pay or remit tax to the government, it works as a sort of interest-free loan to hopefully get the business through to when it can open again and begin making revenues.
The big gap that has not been addressed is property taxes—this is a significant cost for businesses, making up a sizeable portion of their commercial lease/rent. The Burnaby Board of Trade is working with our local and provincial governments to find a way to delay this tax bill.
That said, a number of taxes have been delayed or reduced lately, and here is the latest info:
- Federal Income Tax
- All businesses can now defer, until after August 31, paying income tax amounts that become owing with no interest of penalties.
- Provincial Taxes
- Payments for the Employer Health Tax can now be deferred until September 30
- Business and commercial properties will have the provincial school tax rate cut in half for 2020 (for an average savings of $4,000 per property)
- Remittance for provincial sales tax, municipal and regional district tax, carbon tax, motor fuel tax and tobacco tax are also delayed until September 30
- For individuals, the deadline to file taxes is now June 1, 2020. But this is only an advantage if you expect the owe taxes — do not delay if you expect a refund! If you do owe taxes after this later filing date, you will now have until August 31 to make the payment.
Information on tax deferrals and other government programs is available online at the Burnaby Board of Trade’s COVID-19 Updates page: bit.ly/BBOTCOVID.
The Burnaby Board of Trade is Burnaby’s chamber of commerce, and is a catalyst for economic growth, the convener of business and community leaders, and a champion for the interests of local businesses.