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.

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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