The Canada Revenue Agency (CRA) is extending tax relief for First Nations and indigenous taxpayers in response to coronavirus (COVID-19) pandemic-related restrictions that may temporarily cause employees or employers to work or reside “off-reserve.”
The relief has been extended through 30 June 2021 (from 31 December 2020).
In general, the employment income of indigenous persons is exempt from income tax if the income is “situated on a reserve.” Under administrative guidelines for determining whether employment income is situated on a reserve, and therefore exempt from tax, certain conditions must be satisfied (such as a percentage of employment duties are performed on a reserve).
The CRA originally granted relief from 16 March 2020 through 31 December 2020. Read TaxNewsFlash
Read a January 2021 report prepared by the KPMG member firm in Canada
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