Corporation income tax

Support for businesses

On March 21, 2025, the Government of Canada announced actions to support workers and businesses affected by tariffs.

To support businesses, the government will:

• Defer corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025

Reporting the Canada Carbon Rebate for Small Businesses on your T2 corporation income tax return

Under the current legislation, the Canada Carbon Rebate for Small Businesses is considered assistance received from a government and is subject to taxation. As such, it must be included in taxable income when filing your T2 corporation income tax return for the year in which the rebate was received.

The Government of Canada has proposed that the rebate be tax-free. However, a legislative amendment is required to implement this proposal.

If a legislative amendment is enacted, the CRA will have the authority to process amended T2 corporation income tax returns. Further guidance will be provided at that time.

Visit Canada Carbon Rebate for Small Businesses to stay informed.