COVID-19 support measures: At a glance

March 24, 2020

The federal government has announced significant economic measures to support Canadians affected financially by the COVID-19 outbreak. The country’s 6 largest banks have also committed to helping Canadians get through these extraordinary times.

Here is a roundup of the new measures, organized by their relevance to medical students and residents, practising physicians, retired physicians, and family members. We will continue to update this.

Updated March 25, 2020

Medical students and residents

Practising physicians

Retired physicians

Family members

 

Medical students and residents

 

Personal tax return

(including Quebec)

 

Normally due

Now due

Tax return:

April 30

June 1

 

Taxes owing:

April 30

 

September 1

 

Tip: If you’re expecting a tax refund, try to file earlier. This will speed up determination of your eligibility for the GST/HST credit, Canada Child Benefit and other provincial rebates, since these are based on your tax filing. 

 

 

GST/HST credit 

 

Extra payment: If you’re eligible for this credit, you will get a one-time extra payment in May. Regular payments occur in January, April, July and October.      

 

Tip: Remember you need to file your 2019 tax return to continue receiving benefits like this one.

 

 

Canada Student Loans

 

Pause on payments: There will be a pause on repayment schedules from March 30 until September 30. Interest won’t accrue during this period.

 

Note: This is for the federal portion of the student loan only. The deferral is automatic, so you don’t need to apply for the pause.

 

 

Canada Child Benefit

 

One-time extra: If you’re eligible for the CCB, you will get a one-time extra payment of $300 per child in May.

 

Tip: File your personal tax return as soon as possible so it doesn’t delay the determination of your CCB benefits for 2020–21.

 

 

Canada Emergency Response Benefit

 

The government will provide a taxable payment of $2,000 per month for up to 4 months to the following: 

  • workers who must stop working due to COVID-19 and do not have access to paid leave or income support;
  • workers who are sick, quarantined or taking care of someone with COVID-19;
  • working parents who must stay home without pay to care for their children who are sick or at home due to school and daycare closures;
  • workers who are still employed, but who are not being paid because there is not enough work and they have been asked to stay home;
  • wage earners and self-employed individuals who would not normally be eligible for Employment Insurance.

 

Applications will be available in early April through the My CRA and My Service Canada online portals.

 

 

Mortgage payments 

 

Deferral: The big 6 banks are committed to deferring the mortgage payments of impacted Canadians on a case-by-case basis. 

 

If you have a mortgage with Scotiabank and you are experiencing financial hardship, you can request a mortgage deferral for up to 6 months. For details, please see the latest updates on Scotiabank.com.

 

Note: During the deferral period, interest will continue to accrue, so your payments will be slightly higher after the deferral period ends. You will pay more interest over the life of your mortgage, but a deferral will help with your short-term cash flow.

 

Back to the top

 

 

Practising physicians

 

Personal tax return

(including Quebec)

 

Normally due

Now due

Tax return:

April 30

June 1

 

Taxes owing:

April 30

 

September 1

Tip: If you’re expecting a tax refund, try to file earlier. This will speed up determination of your eligibility for the GST/HST credit, Canada Child Benefit and other provincial rebates, since these are based on your tax filing.  

 

 

Personal tax return with self-employment/business earnings

(including Quebec)

 

 

 

Normally due

Now due

Tax return:

 

June 15

June 15 (unchanged)

Taxes owing:

April 30

 

September 1

 

Corporate tax return

 

No changes announced to filing deadlines. Corporate tax returns are due 6 months after the corporation’s fiscal year-end.

 

 

Corporate tax payments (balances and instalment payments)

 

Any tax payment that becomes owing on or after March 18 and before September 1, 2020, is deferred until September 1, 2020. This includes balances owing and instalment payments.

 

Note: Interest and/or penalties will not accumulate on these amounts.

 

 

Trust tax return

 

Normally due

Now due

Tax return (December 31 year-end):

March 30

May 1

 

Taxes owing and instalments (all trusts):

 

 

between March 19 and August 31

 

September 1

 

Canada Child Benefit

 

One-time extra: If you’re eligible for the CCB, you will get a one-time extra payment of $300 per child in May.

 

Tip: File your personal tax return as soon as possible so it doesn’t delay the determination of your CCB benefits for 2020–21.

 

 

Wage subsidy for employers

 

Eligible small employers, which could include incorporated physicians with employees, can receive a temporary wage subsidy during the 3 months from March 18 to June 20, 2020. The subsidy is equal to 10% of remuneration paid during the period, up to a maximum of $1,375 per employee and $25,000 per employer. 

 

Note: If you’re an employer who is eligible for the small business deduction, you will be eligible for this wage subsidy.

 

 

Canada Emergency Response Benefit

 

The government will provide a taxable payment of $2,000 per month for up to 4 months to the following: 

  • workers who must stop working due to COVID-19 and do not have access to paid leave or income support;
  • workers who are sick, quarantined or taking care of someone with COVID-19;
  • working parents who must stay home without pay to care for their children who are sick or at home due to school and daycare closures;
  • workers who are still employed, but who are not being paid because there is not enough work and they have been asked to stay home;
  • wage earners and self-employed individuals who would not normally be eligible for Employment Insurance.

 

Applications will be available in early April through the My CRA and My Service Canada online portals.

 

 

Mortgage payments  

 

Deferral: The big 6 banks are committed to deferring the mortgage payments of impacted Canadians on a case-by-case basis. 

 

If you have a mortgage with Scotiabank and you are experiencing financial hardship, you can request a mortgage deferral for up to 6 months. For details, please see the latest updates on Scotiabank.com.

 

Note: During the deferral period, interest will continue to accrue, so your payments will be slightly higher after the deferral period ends. You will pay more interest over the life of your mortgage, but a deferral will help with your short-term cash flow. 

 

 

Line of credit

 

If you have an unsecured or secured line of credit with Scotiabank and you’re facing financial hardship as a result of COVID-19, you may be eligible to defer your minimum payments for up to 3 months. For details, please see the latest updates on Scotiabank.com.

 

Note: During the deferral period, interest will continue to accrue and will be payable once the deferral period is over. 

 

 

Back to the top

 

Retired physicians

 

Personal tax return

(including Quebec)

 

Normally due

Now due

Tax return:

April 30

June 1

 

Taxes owing:

April 30

 

September 1

Tip: If you’re expecting a tax refund, try to file earlier.

 

 

Corporate tax return

 

No changes announced to filing deadlines. Corporate tax returns are due 6 months after the corporation’s fiscal year-end.

 

 

Corporate tax payments (balances and instalment payments)

 

Any tax payment that becomes owing on or after March 18 and before September 1, 2020, is deferred until September 1, 2020. This includes balances owing and instalment payments.

 

Note: Interest and/or penalties will not accumulate on these amounts.

 

 

Trust tax return

 

Normally due

Now due

Tax return (December 31 year-end):

March 30

May 1

 

Taxes owing and instalments (all trusts):

 

 

between March 19 and August 31

 

September 1

 

RRIF withdrawal rates

 

For 2020 only, the RRIF minimum withdrawal rates have been reduced by 25%. 

 

Resource: See MD’s page on minimum RRIF withdrawal rates for 2020.

 

Back to the top

 

Family members

 

Personal tax return

(including Quebec)

 

Normally due

Now due

Tax return:

April 30

June 1

 

Taxes owing:

April 30

 

September 1

 

Tip: If you’re expecting a tax refund, try to file earlier. It will speed up determination of your eligibility for the GST/HST credit, Canada Child Benefit or other provincial rebates, since these are based on your tax filing.  

 

 

Canada Child Benefit

 

One-time extra: If you’re eligible for the CCB, you will get a one-time extra payment of $300 per child in May. 

 

Tip: File your personal tax return as soon as possible so it doesn’t delay the determination of your CCB benefits for 2020–21.

 

 

Wage subsidy for employers

 

Eligible small employers can receive a temporary wage subsidy during the 3 months from March 18 to June 20. The subsidy is equal to 10% of remuneration paid during the period, up to a maximum of $1,375 per employee and $25,000 per employer. 

 

Note: If you’re an employer who is eligible for the small business deduction, you will be eligible for this wage subsidy.

 

 

Canada Emergency Response Benefit

 

The government will provide a taxable payment of $2,000 per month for up to 4 months to the following:

  • workers who must stop working due to COVID-19 and do not have access to paid leave or income support;
  • workers who are sick, quarantined or taking care of someone with COVID-19;
  • working parents who must stay home without pay to care for their children who are sick or at home due to school and daycare closures;
  • workers who are still employed, but who are not being paid because there is not enough work and they have been asked to stay home;
  • wage earners and self-employed individuals who would not normally be eligible for Employment Insurance.

 

Applications will be available in early April through the My CRA and My Service Canada online portals.

 

 

Mortgage payments  

 

Deferral: The big 6 banks are committed to deferring the mortgage payments of impacted Canadians on a case-by-case basis. 

 

If you have a mortgage with Scotiabank and you are experiencing financial hardship, you can request a mortgage deferral for up to 6 months. For details, please see the latest updates on Scotiabank.com.

 

Note: During the deferral period, interest will continue to accrue, so your payments will be slightly higher after the deferral period ends. You will pay more interest over the life of your mortgage, but a deferral will help with your short-term cash flow. 

 

 

Line of credit

 

If you have an unsecured or secured line of credit with Scotiabank and you’re facing financial hardship as a result of COVID-19, you may be eligible to defer your minimum payments for up to 3 months. For details, please see the latest updates on Scotiabank.com.

 

Note: During the deferral period, interest will continue to accrue and will be payable once the deferral period is over.

 

Back to the top

 

If you have any questions about these measures, please contact your MD Advisor*. 

 

* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.

 

Banking and credit products and services are offered by The Bank of Nova Scotia “Scotiabank.” Credit and lending products are subject to credit approval by Scotiabank.

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