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April 5, 2021

Canada Revenue Agency issues supplemental guidance on international income tax issues resulting from COVID-19

The Canada Revenue Agency (CRA) published supplemental guidance on April 1, on various international income tax issues resulting from COVID-19-related restrictions on travel (the Travel Restrictions). The administrative guidance updates measures announced in 2020 for the Initial Relief Period of March 16 to September 30, 2020, and covers the following Canadian income tax topics:

  • Income tax residency for individuals
  • Permanent establishment determination
  • Cross-border employment income for US and Canadian resident employees

The supplemental guidance is intended to address potential income tax issues resulting from the continued Travel Restrictions and clarify certain income tax reporting obligations for 2020 and 2021. The CRA also intends to provide examples and answers to frequently asked questions shortly.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.


Full text of Tax Alert