close
Share with your friends

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.

1000

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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

 

Want to do business with KPMG?

 

loading image Request for proposal