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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.


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  • 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

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