Key takeaways
- The Canadian government announced broad tax deferral and relief measures to help businesses affected by new U.S. tariffs.
- The CRA automatically deferred GST/HST payments due between April 2–June 30, 2025, with no interest during the period.
- Quebec, Manitoba, and Ontario introduced matching provincial deferrals for QST, RST, and other taxes.
- Businesses must still file returns on time even if payments are deferred.
- The coordinated plan provides temporary liquidity relief as trade tensions continue.
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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Frequently asked questions
Why did Canada introduce new tax relief measures?
To help businesses manage cash flow pressures from rising U.S. tariffs and global trade disruptions.
Which federal relief applies?
GST/HST payments due between April 2 and June 30, 2025, are automatically deferred with no interest if filed on time.
Do businesses need to apply for this deferral?
No application is required — it’s automatic, but timely filing remains mandatory.
What provincial measures accompany this relief?
Quebec (QST deferral), Manitoba (RST deferral), and Ontario (broad tax deferral) have introduced aligned measures.
Will interest resume later?
Yes, standard interest rates resume on July 1, 2025.
Can late filings still incur penalties?
Yes, while payment deferrals apply, filing deadlines are unchanged. Late filings may still trigger penalties.
Where can businesses find updates?
On the CRA website and respective provincial finance or revenue agency pages.
