Canadian businesses, not-for-profit organizations, and charities experiencing decreases in revenue due to the Covid-19 pandemic may be eligible for a subsidy to cover part of their rent or property expenses from September 27, 2020 until June 2021.

Eligibility

The following 4 criteria must be met in order to be eligible for CERS:

1. Meet at least one of the conditions below:
   1. You had a CRA business number on September 27, 2020.
   1. You had a payroll account on March 15, 2020 or another person or partnership made payroll remittances on your behalf.
   1. Youpurchased the business assets of another person or partnership who meets condition b above, and have made an electionunder the special asset acquisition rules.
2. Are an eligible business, charity, or non-profit organization.
3. You experience a drop in revenue. Your drop in revenue is calculated by comparing your eligible revenue in the month of the claim period to the eligible revenue from a previous period. There is no minimum drop in revenue required. The amount of the drop will determine the amount of the subsidy which can be claimed.
4. Have eligible expenses.

Eligible Expenses

For Rented properties:

• Rent (exclusive of any HST)

For Owned properties:

• Property Tax
• Property Insurance
• Mortgage Interest

If you qualified for Canada Emergency Wage Subsidy (CEWS) and you have any of the above expenses, then you will also be able to claim this rebate as well starting in September 2020 until June 5, 2021.

Qualifying Property

Properties that qualify include any “real and immovable property” (buildings or land) in Canada that your organization: owns/rents and utilizes for ordinary business activities.

Properties that do not qualify include:

• your home, cottage, or other residence used by you, your family members, or other non-arm’s-length persons;
• any properties you own that are primarily used to earn rental income from arm’s-length parties; or
• any properties that are primarily used to earn rental income directly or indirectly from a non-arm’s length party

You have 180 days after the end of each claim period to file. The first period in September is due the end of this month.  Please contact us if you require assistance pursuing this rent subsidy.

Sources

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html
https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-1-individuals/series-1-individuals/income-tax-folio-s1-f5-c1-related-persons-dealing-arms-length.html#N101DA
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-periods-apply.html
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy/cers-after-apply.html