Important tax relief update for Canadian businesses: The Canada Revenue Agency (CRA) has introduced temporary relief measures that will benefit businesses navigating the current tariff environment. Business clients should take note of the payment deferrals for T2 Corporate Income Tax and GST/HST remittances now in effect.
What’s Changing
Effective April 2, 2025, through June 30, 2025, the CRA will waive interest on specific tax payments, providing corporations with temporary financial relief.
T2 Corporate Income Tax Relief
- No arrears or instalment interest on corporate income tax payments (including instalments and balances due) required between April 2 and June 30, 2025.
- Interest relief will also apply to existing balances during this window.
GST/HST Payment Relief
- No interest will accrue on GST/HST payments due or overdue between April 2 and June 30, 2025.
- Existing GST/HST balances will also benefit from this interest-free period.
Important: This is a payment deferral, not a filing deferral. Tax returns must still be filed on time. However, payments due during this window—or balances already outstanding—will not accrue interest until July 1, 2025. Effectively, it’s as if the interest rate during this time period is zero percent.
What Does This Mean For Your Business?
If your corporation owes taxes or GST/HST as of April 1, 2025 and does not pay until June 30, 2025, you’ll accrue just the one day of interest before relief kicks in. From April 2 to June 30, interest charges are paused, offering an opportunity to better manage short-term cash flow without the pressure of compounding interest. If your business is required to pay monthly instalments, those instalments can be paused, so that your June 30 instalment payment is the catch-up payment of three months’ of instalments.
We strongly recommend using this period to plan and structure payments effectively, especially for businesses impacted by recent trade-related costs.
Need help navigating the payment deferral?
Our advisory team is ready to help you assess your payment strategy and ensure compliance with CRA filing deadlines.
Further Reading:
Tax relief and support for businesses affected by tariffs – Source: Canada Revenue Agency
