Canada: Employment tax incentive, PST rebate for machinery and equipment purchases (British Columbia)

Canada: Employment tax incentive, PST rebate

An economic recovery plan in British Columbia released on 17 September 2020 introduces a new employment incentive as well as a temporary provincial sales tax (PST) rebate on select machinery and equipment—measures in response to the coronavirus (COVID-19) pandemic.

  • The employment incentive would be a 15% refundable tax credit to employers that increase their employment of low- to middle-income workers in British Columbia.
  • The temporary PST rebate would apply to PST paid on select machinery and equipment purchased by incorporated businesses between 17 September 2020 and 30 September 2021.

Due to the upcoming election on 24 October 2020, it is unclear if these measures will be adopted as announced, or when legislation to implement these measures may be introduced.

Read a September 2020 report prepared by the KPMG member firm in Canada

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us