Canada: Tax credit for employers in British Columbia (COVID-19)

Canada: Tax credit for employers in British Columbia

Employers with operations in British Columbia can begin in March 2021 to apply for the B.C. employment tax credit—an incentive intended to encourage new jobs and to increase wages paid to employees in British Columbia and provided in response to the coronavirus (COVID-19) pandemic.

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The measure provides a refundable tax credit to certain employers that increased their employment of low- to middle-income workers in British Columbia, specifically in the third to the fourth quarter of 2020. This measure was announced in September 2020 as part of the British Columbia economic recovery plan. Read TaxNewsFlash

  • The increased employment incentive provides a refundable tax credit equal to 15% of the amount by which the total B.C. remuneration paid to eligible employees in the fourth quarter of 2020 exceeds the total B.C. remuneration paid to eligible employees for the third quarter of 2020.
  • The credit is available to almost all employers in British Columbia (not public institutions).
  • For employers required to pay the employer health tax (EHT), the province will first apply this credit to any outstanding EHT amount, with the excess available as a refund.
  • Tax credits for eligible businesses that receive relief from both the British Columbia increased employment incentive and the Canada emergency wage subsidy will not be reduced.


Read a February 2021 report prepared by the KPMG member firm in Canada

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