On March 24, the Ontario government tabled the 2021 Ontario Budget – Ontario’s Action Plan: Protecting People’s Health and our Economy – which outlines the government’s $186 billion spending plan focused on two key priorities: health and economic recovery. This article summarizes key business and personal tax and other measures outlined in the 2021 Ontario Budget.
Personal and Corporate Tax Rates
The budget does not propose changes to corporate or personal income tax rates.
Business Tax Measures
Doubling the Ontario Small Business Support Grant
The government announced that an additional round of support will be provided through the Ontario Small Business Support Grant. Small businesses who have been determined as eligible recipients of the Ontario Small Business Support Grant will automatically be entitled to a second payment in an amount equal to the first payment they received. They will not need to apply again to receive this additional funding.
Ontario launched the Ontario Small Business Support Grant in January 2021, which provides a minimum of $10,000 and a maximum of $20,000 to help eligible small businesses that were required to close or significantly restrict services under the provincewide shutdown that came into effect in December 2020. Businesses must demonstrate they have experienced a minimum 20 per cent revenue decline and have less than 100 employees to qualify. Application closing date is March 31, 2021.
Ontario Tourism and Hospitality Small Business Support Grant
The government is introducing the new Ontario Tourism and Hospitality Small Business Support Grant, which will provide one‑time payments of $10,000 to $20,000 to eligible small businesses. These eligible small businesses can apply for support to help them recover from the impacts of COVID‑19 as well as to help create and protect jobs. Businesses must demonstrate they have experienced a minimum 20 per cent revenue decline and have less than 100 employees to qualify.