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COVID-19: Canada Emergency Rent Subsidy & Canada Emergency Wage Subsidy

Commercial Property Owner and Rental Assistance

Canada Emergency Rent Subsidy (“CERS”)

The framework of the CERS mirrors the framework of the Canada Emergency Wage Subsidy. We have prepared a table to assist you in navigating these rules.

Due to its complex nature, readers are urged to seek out their Richter professionals so that their impact on you can be properly evaluated.

The highlights of the program are as follows:

  • The CERS will be available retroactively to September 27, 2020 and will last until June 30, 2021. Program details have only been released up until December 21, 2020.
  • Under the CERS, commercial property owners and tenants can receive a subsidy of up to 65% of $75,000 of qualifying expenses per period. The CERS rate is determined based on the revenue decline as detailed in the table. The maximum qualifying expenses that can be claimed by members of an “affiliated group” is $300,000 per period. Please note that an “affiliated group” has a specific definition for tax purposes.
  • Commercial property owners and tenants subject to a “public health restriction” can receive an additional subsidy of up to 25% of $75,000 of qualifying expenses per period. Please note that a “public health restriction” also has a specific definition for tax purposes.
  • For a tenant, qualifying expenses include gross rent paid but excludes various ancillary or extraordinary items such as sales taxes, interest, penalties and damages.
  • For a commercial property owner, who is not a landlord to third parties, qualifying expenses include mortgage interest, insurance and property taxes.
  • Employers can apply for the subsidy through the Canada Revenue Agency My Business Account or Represent a Client. Additional details can be found here.

Employer-Employee Matters

Canada Emergency Wage Subsidy (“CEWS”)

  • Additional changes were announced to the CEWS that are applicable retroactively to September 27, 2020.
  • The CEWS has also been extended to June 30, 2021 but, again, program details have only been released up until December 21, 2020.
  • The deadlines to apply for each period have also been updated.
  • We have updated our table to help you navigate through these changes.

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