New business supports have been announced by the Ontario provincial government.
Ontario Business Costs Rebate Program
The Ontario government has introduced new supports for many of the businesses that are most impacted by public health measures in response to the Omicron variant. These new business supports include a new Ontario Business Costs Rebate Program and a six-month interest- and penalty-free period to make payments for most provincially administered taxes.
Through the new Ontario Business Costs Rebate Program, eligible businesses will receive rebate payments equivalent to 50 per cent of the property tax and energy costs they incur while subject to the current capacity limits. This will provide support to businesses that are expected to be most impacted financially by the requirement to reduce capacity to 50 per cent.
Who is Elgible?
Restaurants, smaller retail stores and gyms are examples of businesses eligible for the Ontario Business Costs Rebate Program. A full list of eligible business types will be made available through a program guide in mid-January 2022.
Online applications for this program will open in mid-January 2022, with payments to eligible businesses provided retroactive to December 19, 2021. Businesses will be required to submit property tax and energy bills as part of the application process.
The province is also providing additional new business supports to help improve cash flows for Ontario businesses. By providing a six-month interest and penalty-free period to make payments for most provincially-administered taxes, Ontario is supporting businesses while capacity restrictions are in place while providing the flexibility Ontario businesses will need for long-term planning.
Timeframe For 2022 New Business Supports
The six-month period begins January 1, 2022 and end July 1, 2022.
This measure will provide up to $7.5 billion in relief to help approximately 80,000 Ontario businesses. With this help, approximately 80,000 businesses will have the option to delay their payments for the following provincially administered taxes, helping them free up cash flow during these challenging times:
- Employer Health Tax
- Beer, Wine & Spirits Taxes
- Tobacco Tax
- Insurance Premium Tax
- Fuel Tax
- International Fuel Tax Agreement
- Gas Tax
- Retail Sales Tax on Insurance Contracts & Benefit Plans
- Mining Tax
- Race Tracks Tax
.