Ontario Provides Tax Deferral to Mitigate U.S. Tariffs

On April 7, 2025, the Government of Ontario announced a robust relief package worth approximately $11 billion to alleviate the potential impact of global economic uncertainty resulting from recent import tariffs imposed by the United States.

Part of a broader strategy to protect jobs and maintain economic stability, this relief includes providing businesses with a temporary 6-month tax remittance deferral from April 1 to October 1, 2025. The deferral is available for certain business tax programs administered by the province, including:

• Employer Health Tax

• Insurance Premium Tax

• Gasoline Tax, Fuel Tax, and the International Fuel Tax Agreement

• Mining Tax

• Tobacco Tax

• Beer, Wine, and Spirits Tax

• Race Tracks Tax

• Retail Sales Tax on insurance contracts and benefit plans

During the deferral period, interest and penalties will not apply to tax payments due under the programs noted above. However, any owed taxes must be remitted by October 1, 2025, and any applicable tax returns should be filed by the required deadlines.

The tax deferral is intended to provide immediate cash flow relief, allowing businesses to maintain operations and protect jobs during tough economic times.

In addition, the province will issue a further $2 billion in surplus rebates to safe employers via the Workplace Safety and Insurance Board to help employers manage rising costs, retain employees, and stabilize operations. $2 billion in rebates was previously distributed in March.

For further information on the tax deferral and other measures included in the province’s relief package, please see the news release, “Ontario Taking Action to Protect Workers Amid Economic Uncertainty.”

If you have any questions about how this relief might impact your organization, please do not hesitate to contact Ryan TaxDirect^® at 1.800.667.1600 or taxdirect@ryan.com.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.