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Canada Extends Tax Relief for Covid Impacts With U.S. Focus

April 1, 2021, 8:35 PM

Canada’s tax authority is extending income tax relief for people affected by Covid-19 travel restrictions with a focus on U.S. residents in Canada and Canadian employees working for U.S. companies.

The Canada Revenue Agency’s supplemental guidance published Thursday on the international income tax impacts of the pandemic includes extensions of relief that had expired Sept. 30, 2020.

Individuals stuck in Canada because of travel restrictions won’t have their time in the country counted against the 183-day test that determines tax residency until restrictions are lifted or Dec. 31, whichever comes first, the guidance says.

The test is part ...