Tax payment deferral relief measures
The Canadian federal government and the provinces of Manitoba, Ontario, and Quebec have announced tax payment deferral relief measures to help businesses manage cash flow amid new tariffs and economic uncertainty in trade relations between the United States and Canada. This relief allows businesses to defer certain tax payments, without incurring interest or penalties, for a limited period in 2025. The relief is broadly available to all businesses, not only those demonstrably affected by tariffs.
Summary of tax payment deferral relief measures
Federal
- Deferral period: April 2 to June 30, 2025.
- Applies to corporate income tax payments and GST/HST remittances (including instalments and arrears).
- Interest waived during the deferral period.
- Interest resumes on outstanding amounts from July 1, 2025.
- Filing deadlines for tax returns remain unchanged; returns must be filed on time.
Manitoba
- Optional deferral of health and post-secondary education tax levy (payroll tax) remittances until June 15, 2025.
- Applies to February, March, and April 2025 return periods. Only payments are deferred; returns must still be filed on time.
- Optional deferral of retail sales tax (RST) remittances until June 20, 2025; RST returns must be filed on time.
- Deferral does not apply to outstanding amounts from prior periods.
Ontario
- Deferral period: April 1 to October 1, 2025 (up to six months).
- Applies to multiple provincial taxes, including employer health tax, insurance premium tax, gasoline tax, fuel tax, international fuel tax agreement, and others.
- All deferred taxes must be paid by October 1, 2025.
- Filing deadlines remain unchanged; returns must be filed on time.
Quebec
- Harmonized with federal relief.
- Deferral period: April 2 to June 30, 2025.
- Applies to corporate income tax payments and Quebec sales tax (QST) remittances.
- Interest is waived during the deferral period; it resumes July 1, 2025.
- Filing deadlines remain unchanged.
Summary table of tax payment deferral relief
Jurisdiction | Tax types covered | Deferral period | Interest waived | Filing deadline extended | Notes |
Federal | Corporate income tax, GST/HST | April 2 – June 30, 2025 | Yes | No | Interest resumes on July 1, 2025 |
Manitoba | Health and post-secondary education tax levy (payroll tax), Retail sales tax (RST) | Payroll tax: February–April returns, payment due June 15, 2025; RST: payment due June 20, 2025 | Yes | No | Returns must be filed on time; deferral optional |
Ontario | Employer health tax, insurance premium tax, gasoline tax, fuel tax, international fuel tax agreement, and others | April 1 – October 1, 2025 | Yes | No | All deferred taxes due by October 1, 2025 |
Quebec | Corporate income tax, Quebec sales tax (QST) | April 2 – June 30, 2025 | Yes | No | Interest resumes on July 1, 2025 |