COVID-19: FAQ for Businesses

This page presents answers to the most frequently asked questions we have received in relation to the COVID-19 crisis. We hope they give you the information you need.

For information about important deadlines businesses need to meet to fulfill their tax obligations, see COVID-19 Summary Tables: Deadlines for Businesses

For information about COVID-19 relief measures, see Relief Measures for Individuals and Businesses.

GST/HST, QST and other taxes

What are the deadlines for filing GST/HST and QST returns?

The deadlines for filing all types of GST/HST and QST returns remain the same. If you are able to file the returns by the usual deadlines, you should do so.

However, you will not be charged interest or a penalty if you file, by June 30, 2020, all returns that you would normally have been required to file between March 27, 2020, and June 1, 2020.

If you continue to experience difficulty in filing your GST/HST and QST returns after June 30, you can apply in writing to have your penalties cancelled. Cancellations will be granted on a case-by-case basis. See Application for Cancellation of Interest, Penalties or Charges for more information.

What measures are provided for GST/HST and QST payments and instalments?

The deadline for paying GST/HST and QST related to returns that would normally be filed between March 27, 2020, and June 1, 2020, has been extended to June 30, 2020. The same applies to instalment payments.

If you continue to experience difficulty in remitting GST/HST and QST amounts after June 30, you can contact us to enter into a payment agreement or you can apply in writing to have your penalties and interest cancelled. Cancellations will be granted on a case-by-case basis. See Payment Agreements and Application for Cancellation of Interest, Penalties or Charges for more information.

Is Revenu Québec still processing refunds?

Yes. Given the circumstances, we are temporarily prioritizing tax refunds to ensure you quickly receive the money you need.

Note that you can now file fillable PDFs of some tax refund applications using our online service in My Account for businesses.

Use our online services to ensure your application is processed faster.

What is the deadline for filing the return respecting the tax on lodging for the first calendar quarter of 2020 and remitting the related tax?

The usual April 30, 2020, deadline for the first calendar quarter of 2020 has been extended to July 31, 2020, for both filing the return and remitting the related tax.

This means that if you are registered for the tax on lodging, you will have two returns to file by July 31, 2020: one for the first calendar quarter of 2020 and one for the second quarter.

Does the extension apply to both sleeping-accommodation establishment operators and digital accommodation platform operators?

Yes. The extension applies to anyone required to file a return respecting the tax on lodging for the first calendar quarter of 2020.

Will I be charged penalties or interest if I file the return respecting the tax on lodging and remit the related tax by July 31, 2020?

No. We will not charge any penalties or interest for the first quarter of 2020 if you file the return respecting the tax on lodging and remit the related tax by July 31, 2020.

Are there measures for other taxes?

No special measures have been announced for other taxes, such as:

  • the specific tax on alcoholic beverages;
  • the tax on insurance premiums;
  • the specific duty on new tires;
  • the municipal tax for 9-1-1 service;
  • the fuel tax;
  • the tobacco tax.

Employers

Telework

Important

The information below only concerns employers with employees working from home because of the COVID-19 pandemic.

Do employers need to complete form TP-64.3-V, General Employment Conditions, for all their employees working from home in 2020 because of the COVID-19 pandemic?

Employees who incurred expenses to work from home because of the COVID-19 pandemic may be able to deduct certain expenses in their 2020 income tax return.

You do not need to complete form TP-64.3-V, General Employment Conditions, for employees who choose to calculate their teleworking expenses using the temporary fixed rate method. However, you must complete it for employees who choose the detailed method. Be sure to follow the instructions below:

  • If only some of your employees are working from home, you can complete form TP-64.3-V, General Employment Conditions, for each of them, sign it (see below for more about electronic signatures) and send it to them so they can enclose it with their 2020 income tax return.
  • If you have many employees working from home, you can use a new online service (available in January 2021 [in French only]) to order prefilled TP-64.3-V forms for them, and then send them an electronic or paper copy of the forms so they can enclose them with their 2020 income tax returns. To learn more, click Access the Order Prefilled TP-64.3-V Forms Online Service (in French only).
Note
The Ministère des Finances has published a new calculator to help employees choose the best method for calculating their teleworking expenses.
How do employers complete form TP-64.3-V, General Employment Conditions, for an employee working from home?New

Read on for help completing certain sections of form TP-64.3-V, General Employment Conditions, for an employee who is working from home.

Questions concerning the employment (section 3.1)

The employee's period of employment is the period during which you employed the employee in 2020, including while he or she was working from home.

Expenses related to working remotely (section 3.6)

If the employee worked from home more than 50% of the time for at least one month (four consecutive weeks) in 2020 because of the COVID-19 pandemic, he or she may be able to deduct some of the related expenses.

An employee who paid for office supplies (paper, pencils, ink cartridges, etc.) used directly in the course of his or her duties can deduct certain expenses related to working from home (see the next question to find out what expenses are deductible).

To learn more about home office expenses and deductible supplies, see guide IN-118-V, Employment Expenses.

Except where the Taxation Act provides otherwise, the reimbursement of an employee's personal expenses by an employer must be included in the employee's income. Generally, it must be entered in boxes A and L of the employee's RL-1 slip.

However, given the exceptional circumstances caused by the COVID-19 pandemic, we consider that the total or partial reimbursement of up to $500 in expenses (supported by receipts) incurred to purchase personal computer equipment or office equipment for the purpose of working remotely is not a taxable benefit for the employee, since the employer gains the most from it. If the reimbursement exceeds $500, the excess is taxable and must be included in boxes A and L of the employee's RL-1 slip.

Employer's signature (Part 4)

To make things easier for employers, Revenu Québec will allow them to email electronically signed copies of form TP-64.3-V to employees until further notice.

The following types of electronic signatures will be accepted:

  • a digital certificate produced using a specialized tool;
  • a scanned handwritten signature (for example, an image of a signature);
  • a handwritten signature made using a device such as a stylus or mouse.
What employment expenses are deductible?

Deductible expenses

The most common teleworking expenses are listed below.

  • paper, pencils, ink cartridges, staples, paperclips, envelopes and pens;
  • postage fees;
  • home Internet access fees;
  • work-related long-distance calls; 
  • cellphone calls (including mobile plan fees or prepaid airtime fees, provided they are calculated in proportion to the use of the phone for work);
  • heating, electricity, cleaning products, lightbulbs and minor repairs;
  • the portion of public utilities expenses included in condo fees, if applicable;
  • a reasonable part of the rent related to the home office space.

Non-deductible expenses

The following expenses cannot be deducted in the income tax return:

  • office furniture (desk, chair, etc.);
  • office equipment (printer, fax machine, briefcase, laptop case or bag, calculator, etc.);
  • the purchase of a cellphone, computer, laptop, tablet, fax machine, etc.;
  • computer accessories (monitor, mouse, keyboard, headset, microphone, speakers, webcam, router, etc.);
  • the rental value of the home office, if the employee owns his or her home;
  • monthly landline telephone expenses;
  • cellphone licencing or activation fees;
  • other electronics (television, smart speakers, digital assistant, etc.);
  • insurance premiums, taxes and property taxes related to the office, unless the employee is paid by commission;
  • capital cost allowance;
  • mortgage interest;
  • mortgage capital payments;
  • capital expenditures (replacement of windows, floors, furnace, etc).
When an employer gives an employee money to buy equipment needed for teleworking, is it considered a taxable benefit for the employee?

Given the exceptional circumstances caused by COVID-19, we do not consider the total or partial reimbursement of up to $500 for necessary computer or office equipment that an employee purchased for teleworking as a taxable benefit for the employee. We consider that the employer gains the most from the purchase.

However, if the reimbursement exceeds $500, the excess is taxable and must be included in boxes A and L of the employee's RL-1 slip.

If an employee who normally reports for work at one of his or her employer's establishments outside Québec (but in Canada) begins working from home temporarily due to COVID-19 and is paid from an establishment in Québec, does the employee's province of employment change?

No. When an employee works from home temporarily due solely to COVID-19, the employee's province of employment remains the one he or she usually worked from immediately before working from home.

This position applies to the 2020 taxation year.

Benefit related to the use of an automobile

In keeping with the principle of harmonization of tax legislation regarding automobiles, the same temporary rules for 2020 and 2021 concerning the calculation of an automobile benefit applicable under the federal tax system will also apply under Québec's tax system.

What conditions need to be met to reduce the value of the standby charge?New

Employers can generally reduce the value of the standby charge related to an automobile when all of the following conditions are met:

  • the employer requires that the employee use the automobile to perform his or her duties;
  • the employee's use of the automobile for the performance of his or her duties represents more than 50% of its overall use;
  • the number of kilometres that the employee travels for personal purposes does not exceed 1,667 per 30-day period or a total of 20,004 in the year.

If the conditions listed above were met for 2019 and the automobile was provided by the same employer as in 2019, the employee's use of the automobile in the performance of his or her duties for 2020 and 2021 is considered to be more than 50% of its overall use.

In addition, the calculation of the automobile benefit for 2020 and 2021 will be made using data specific to the two taxation years.

How are benefits related to the automobile's operating expenses calculated?New

In most cases, employers can calculate the benefit related to an automobile's operating expenses using form TP-41.C-V, Calculation of an Automobile Benefit, or one of the methods described below.

Basic method

Under this method, the benefit related to the personal-use portion of an automobile's operating expenses is calculated at $0.28/km for 2020 and $0.27/km for 2021. If the employee's duties consist mainly in selling or leasing automobiles, the benefit is calculated at $0.25/km for 2020 and $0.24/km for 2021.

Simplified method

Employers can use this method to calculate the benefit related to an automobile's operating expenses when both of the following conditions are met:

  • the employee's use of the automobile in the performance of his or her duties is more than 50% of its overall use;
  • the employee has notified the employer in writing, before the end of the year, that he or she would like the simplified calculation method to be used.

Under this method, the benefit related to an automobile's operating expenses is equal to half of the reasonable value of the standby charge, calculated without deducting any standby-charge amounts the employee may have reimbursed.

If a given employee met both conditions for the simplified method in 2019, the same method can be used for 2020 and 2021 even if the employee does not inform the employer that he or she would like it to be used for those years.

Note that benefit related to the operating expenses of an automobile is equal to the lesser of the following amounts:

  • the benefit for automobile operation expenses calculated based on the prescribed rate per kilometre given above (basic method); or
  • half of the reasonable value of the standby charge (simplified method).

Credit for contributions to the health services fund

What is the credit for contributions to the health services fund?Updated

This credit complements the federal Canada Emergency Wage Subsidy (CEWS). Employers with an establishment in Québec that are eligible for the CEWS for a claim period can also receive the credit for contributions to the health services fund for the same period in respect of employees who are on paid leave because of the COVID-19 pandemic. The claim periods for both programs are the same:

  • March 15 to April 11, 2020
  • April 12 to May 9, 2020
  • May 10 to June 6, 2020
  • June 7 to July 4, 2020
  • July 5 to August 1, 2020
  • August 2 to 29, 2020
  • August 30 to September 26, 2020
  • September 27 to October 24, 2020
  • October 25 to November 21, 2020
  • November 22 to December 19, 2020
  • December 20, 2020, to January 16, 2021
  • January 17 to February 13, 2021
  • February 14 to March 13, 2021

The credit for contributions to the health services fund that an employer can claim is equal to the total health services fund contribution the employer made for a week included in a claim period on the salary and wages paid to employees on paid leave due to COVID-19.

Can all employers get the credit for contributions to the health services fund?

No. This credit is granted to employers who are eligible for the Canada Emergency Wage Subsidy and have an establishment in Québec.

Employers who are eligible for only the 10% Temporary Wage Subsidy for Employers are not eligible for the credit for contributions to the health services fund.

Does the credit for contributions to the health services fund cover all employees?

No. The credit covers only employees who are on paid leave for an entire week during the eligibility period. It does not cover employees who work during a given week, even if it is for just a few hours. Likewise, employees who received no remuneration from the employer for at least 14 consecutive days during an eligibility period that ended on or before July 4, 2020, are not eligible for that period.

How do employers claim the credit for contributions to the health services fund?Updated

Employers must complete the Summary of Source Deductions and Employer Contributions (RLZ‑1.S-V or RLZ-1.ST-V) in order to claim the credit for contributions to the health services fund for 2020 and 2021. No other documents are required. We may contact employers afterwards to check their eligibility for the credit.

An employer can deduct the amount of the credit for contributions to the health services fund from the periodic payments of the contribution to the health services fund to be made to Revenu Québec after April 30, 2020. The amount must be related to the salary and wages paid to an employee on paid leave before the deadline for making a periodic payment and must not have reduced another periodic payment. However, the employer cannot amend a source deductions and employer contributions return filed before May 1, 2020, to take into account the credit for contributions to the health services fund.

How do employers calculate the credit for contributions to the health services fund?

The credit for contributions to the health services fund is equal to the salaries and wages subject to the contribution to the health services fund paid, for a week included in a qualifying period, to an employee who was on paid leave (unless the employee was not remunerated during a period of at least 14 consecutive days included in a qualifying period ended on or before July 4, 2020) multiplied by the health services fund contribution rate.

If an employee is paid every two weeks and one of the two weeks is included in a qualifying period, only the portion of the salaries and wages subject to the contribution to the health services fund paid in that week will give entitlement to the credit for contributions to the health services fund.

Filing the source deductions and employer contributions return

Have the deadlines for reporting source deductions and employer contributions and paying amounts due been extended?

No. The usual deadlines apply, regardless of your remittance frequency.

Corporation income tax

What is the deadline for filing the corporation income tax return?

Some corporations must normally file the Déclaration de revenus des sociétés (CO-17) no later than the date that is six months after the end of their taxation year. If that date falls in the period:

  • from March 17 to May 30, 2020, those corporations have until June 1, 2020, to file the return;
  • from May 31 to August 31, 2020, those corporations have until September 1, 2020, to file the return.

However, if the deadline for paying a balance due of income tax was extended to September 30, 2020, no late-filing penalties will be imposed in respect of returns filed by that date (the payment extension applies to corporations whose taxation year ends in the period from January 17 to July 29, 2020).

Note

After the deadline for paying an income tax balance was extended to September 30, 2020, some corporations understood that they had an additional month to file their income tax return. This was not the case and led to some corporations being automatically charged a late-filing penalty.

If a corporation paid its income tax balance by September 30, 2020, Revenu Québec will cancel the late-filing penalty charged for an income tax return filed between September 2 and 30, 2020, for a taxation year that ended in the period from November 30, 2019, to January 16, 2020.

If a corporation paid part of its income tax balance by September 30, 2020, Revenu Québec will cancel the late-filing penalty charged for the part of the balance for a taxation year that ended in the period from November 30, 2019, to January 16, 2020. The late-filing penalty will still apply to the part of the income tax balance paid after September 30, 2020.

What measures are provided for corporation income tax instalments?

Corporations that would normally have to pay instalments in the period between March 17 and September 29, 2020, now have until September 30, 2020 to do so.

Interest will accrue from October 1, 2020, on any payment not received by September 30, 2020.

Note
Instalment payments are not deferred for the compensation tax for financial institutions, the tax on capital for insurance corporations or the tax on capital for life insurance corporations.
What measures are provided for corporation income tax balances?

A corporation must normally pay its income tax balance no later than the date that is two months after the end of its taxation year. If that date falls in the period between March 17 and September 29, 2020, the corporation has until September 30, 2020, to pay its balance.

Interest will accrue from October 1, 2020, on any payment not received by September 30, 2020.

Note
Payment is not deferred for the compensation tax for financial institutions, the tax on capital for insurance corporations or the tax on capital for life insurance corporations.
How does the Canada Emergency Wage Subsidy (CEWS) affect the tax credits a corporation can claim for salaries and wages?New

As government assistance, the CEWS reduces the salaries and wages for which the credit is being claimed.

Partnerships

What measures are provided for the Partnership Information Return?

Partnerships that would normally file the Partnership Information Return (TP-600-V) during the period from:

  • March 17 to March 31, 2020, now have until May 1, 2020, to file the return;
  • April 1 to May 30, 2020, now have until June 1, 2020, to file the return;
  • May 31 to August 31, 2020, now have until September 1, 2020, to file the return.

Registered Charities and Other Donees

Has the deadline to file the Information Return for Registered Charities and Other Donees been extended?

The deadline for filing the Information Return for Registered Charities and Other Donees (TP-985.22-V) has been extended to December 31, 2020, for registered charities that are required to file the return between March 17, 2020, and December 30, 2020.

This measure also applies to other donees that are required to file form TP-985.22-V during the same period.

Non-profit corporations

Has the deadline for filing the Déclaration de revenus et de renseignements des sociétés sans but lucratif been extended?

Non-profit corporations must normally file the Déclaration de revenus et de renseignements des sociétés sans but lucratif (CO-17.SP) and the Information Return for Tax-Exempt Entities (TP-997.1-V), if applicable, by the date that is six months after the end of their taxation year. If that date falls in the period:

  • from March 17 to May 30, 2020, those corporations have until June 1, 2020, to file the returns;
  • from May 31 to August 31, 2020, those corporations have until September 1, 2020, to file the returns.

Trusts

Has the filing deadline for the income tax or information return been extended?

The filing deadline for the Trust Income Tax Return (TP-646-V) or the Trust Information Return (TP-646.1-V) has been extended for certain trusts.

Trust whose taxation year ended on December 31, 2019

The filing deadline for the trust income tax or information return for 2019 of a trust whose taxation year ended on December 31, 2019, has been extended to May 1, 2020.

Trust whose taxation year ended on a date that falls in the period from January 1 to March 1, 2020

The filing deadline for the trust income tax return or information return of a trust whose taxation year ended on a date that falls in the period from January 1 to March 1, 2020, has been extended to June 1, 2020.

Trust whose taxation year ended on a date that falls in the period from March 2 to June 2, 2020

The filing deadline for the trust income tax return or information return of a trust whose taxation year ended on a date that falls in the period from March 2 to June 2, 2020, has been extended to September 1, 2020.

However, since the deadline for paying a balance due of income tax has been extended to September 30, 2020, no late-filing penalties will be imposed in respect of returns filed by that date.

Mining tax

Has the deadline for filing the mining tax return been extended?

The deadline for filing the Mining Tax Return (IM-30-V) has been extended:

  • to June 1, 2020, for operators that were required to file the return in the period from March 17 to May 30, 2020;
  • to September 1, 2020, for operators that were required to file the return in the period from May 31 to August 31, 2020.

This measure also applies to operators of more than one mine that must use forms IM-30.MX-V and IM-30.DL-V (instead of form IM-30-V) to file their mining tax return.

What measures are provided for mining tax instalments?

The measures deferring payment of corporation income tax instalments and balances also apply to the mining tax. For more information, see Businesses – Corporation income tax above.

Mandatory billing in the restaurant sector

Are the relief measures for restaurant establishment operators still in effect?

No. Since July 1, 2020, a Sommaire périodique des ventes (periodic sales summary) must be filed as usual.

Consequently, restaurant establishment operators must once again produce a periodic sales summary using a sales recording module (SRM) and send it us by the normal deadline.  

However, operators will not charged a penalty if they fail to file a periodic sales summary for periods between January 1 and June 30, 2020. Operators are still encouraged to send us summaries for those periods when they are able to do so.

Electronic signatures

Can an authorized person sign forms MR-69-V, MRW-69.RP, MRW-69.E-V, MR-69.R-V or TP-64.3-V for a corporation electronically?

Yes, the forms listed below can be signed electronically until further notice. However, the signature must meet the general requirements of specialized tools.

  • Authorization to Communicate Information or Power of Attorney (MR-69-V);
  • Autorisation relative à la communication de renseignements (MRW-69.RP);
  • Power of Attorney or Authorization to Communicate Information to a Person Registered for My Account for Businesses (MRW-69.E-V);
  • Revocation of Authorization to Communicate Information or of Power of Attorney (MR-69.R-V);
  • General Employment Conditions (TP-64.3-V).

Note that My Account for businesses can be used to give a designated person power of attorney or authorization. In this case, an electronic signature is not necessary.  

What types of electronic signatures will Revenu Québec accept?

We will accept the following types of electronic signatures:

  • a digital certificate (for example, a digital certificate produced using a specialized tool);
  • a scanned hand-written signature (meaning an image of a signature);
  • a signature made using an input tool such as a stylus or mouse.

Recovery of tax debts

What if I have a tax debt or Revenu Québec is garnishing my bank account?

On March 17, 2020, we notified financial institutions that Revenu Québec had granted a release of garnishments on current bank accounts, including business accounts, for tax debt so that everyone could get the government assistance they were entitled to.

Given the evolving situation, we will gradually begin to reapply recovery measures as of October 5, 2020, while respecting the relief measures still in effect. Consequently, as of that date, we can once again send financial institutions seizure by garnishment notices for Québec tax debts.

Requirements to pay (GST debts) issued under the Excise Tax Act are still suspended until further notice.

Note that garnishments covering investment accounts (including RRSPs) were maintained unless the garnishment covered bank accounts and investment accounts simultaneously. In addition, if legal proceedings were started to liquidate investment accounts, the garnishment on these accounts was also maintained. For information specific to your situation, call us at 1 866 832-6816.

General information

What is currently the fastest way to receive a refund?

Direct deposit is the fastest way to receive a refund.

For information about registering for direct deposit, see Direct Deposit of Refunds.

What is currently the fastest, safest way to file a return?

Online is the fastest, safest way to file a return, since it reduces physical handling of documents.

For more information, see our online services for businesses.

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