Canada Unveils 2025 Tax Relief to Help Businesses Weather U.S. Tariffs
Amid mounting economic pressure from new U.S. tariffs, the Canadian government has rolled out a broad set of tax relief measures designed to ease the strain on businesses.
On March 21, 2025, Prime Minister Mark Carney announced a federal-provincial support package, with a key focus on indirect tax deferrals. At the federal level, the Canada Revenue Agency (CRA) will automatically defer GST/HST payments due between April 2 and June 30, 2025. Businesses don’t need to apply or submit documentation, and no interest will accrue during this period. However, returns must still be filed on time, and normal interest rates resume from July 1.
Several provinces have introduced complementary measures:
- Quebec (from April 4): Aligns with the CRA to provide the same automatic QST (Quebec Sales Tax) deferral and interest-free window.
- Manitoba (from March 10): Offers a penalty- and interest-free RST (Retail Sales Tax) deferral until June 20, covering monthly and quarterly filers.
- Ontario (from April 7): Grants a broad deferral of provincially administered taxes from April 1 to October 1, 2025 (specific taxes to be confirmed).
This coordinated response is designed to give businesses breathing room amid global trade challenges. Companies are urged to stay up to date on provincial updates and ensure timely return filings to benefit fully from the relief.
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