Canada: Updated guidance for individuals affected by travel restrictions (COVID-19)

Canada: Updated guidance for individuals

The Canada Revenue Agency (CRA) updated tax return filing guidance and extended relief measures for individuals affected by international travel restrictions—relief offered in response to the coronavirus (COVID-19) pandemic.


The new CRA guidance (released on 1 April 2021):

  • Provides guidelines for certain cross-border employees about how to file their 2020 Canadian income tax filings
  • Extends previous administrative relief for U.S. resident employees working in Canada, and for individuals who may otherwise meet Canada’s individual residency test

The Canadian government in 2020 imposed restrictions on travel that disrupted normal business operations. In response, the CRA released guidance in May 2020 to provide relief for employees and businesses affected by these restrictions. That guidance generally expired 30 September 2020. Read TaxNewsFlash

The new guidance extends certain aspects of the previous relief.

The new guidance also documents the CRA’s views on certain permanent establishment issues, but does not extend the CRA’s previous guidance for permanent establishments or corporate residency—which expired 30 September 2020. Corporate taxpayers affected beyond this date are directed to contact the CRA.

Read an April 2021 report [PDF 218 KB]prepared by the KPMG member firm in Canada

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