Moore Stephens
Taxation

PRTA and PREPDT – two support programs for local companies

The PRTA has two components. It is possible to qualify if the company or organization is in the tourism and hospitality business, or if it has been affected by a qualifying health restriction.

The PRTA allows companies to benefit from a subsidy for seven four-week periods between October 24, 2021 and May 7, 2022 (P22 to P28).

Tourism and Hospitality Recovery Program (PRTA) – Component for tourism and hospitality businesses

Eligible companies

To be eligible, a company must, in addition to the general eligibility conditions applicable for SSUC purposes, meet the following criteria:

  • Work in the tourism, hospitality, art, entertainment or leisure activities supported by this program;
    • Revenues from the targeted sectors must represent more than 50% of total eligible revenues for the months used as the previous reference period to establish this drop in revenues (i.e. either the previous year’s comparative months or the average of January and February 2020);
  • Observe a 12-month average drop in revenues, from March 2020 to February 2021, of at least 40%;
  • Observe a drop in income of at least 40% for the application period (or the previous month).

Eligible activities

Eligible activities include

  • The provision of short-term accommodation (hotel, motel, B&B, chalet, etc.);
  • Food and beverage preparation and service (restaurant, bar, caterer, street food truck, food counter, etc.);
  • Tourism-related activities such as travel agencies, tour operators, certain charter bus rentals and tourist trips (pleasure cruises, hot-air balloon tours, etc.);
  • Convention centers and organizers of conventions, events and trade shows;
  • The staging of shows and exhibitions, and the operation of theme parks and gardens (museums, zoos, botanical gardens, etc.);
  • Campgrounds, vacation camps, outfitters, etc.; ▪ Cinemas, drive-ins, casinos and amusement arcades;
  • The supply of recreational services such as a fitness center, ski center, marina, recreational sports center (curling, bowling, mini-golf, etc.) but excluding golf clubs and courses, recreational clubs, professional sports clubs, teams or leagues or facilities used primarily by such organizations.

Calculation of the average drop in income and subsidy rate

The percentage drop in income must be calculated in the same way as for the SSUC and SUCL program.

To calculate the average monthly revenue reduction over the 12-month period from March 2020 to February 2021, the company must use the actual revenue decrease or increase for the given month. However, if the company did not operate for any length of time during one or more of the application periods 1 to 13, it must exclude the corresponding reference month from the 12-month average drop in income, unless the cessation of operations was due to a health restriction, in which case the month is included in the calculation.

Tourism and Hospitality Recovery Program (PRTA) – Local containment component

This part of the PRTA targets companies or organizations in any sector that have been affected by an eligible health restriction.

To benefit from this program, companies or organizations must, among other things :

  • Must have been closed for a minimum of 7 days during the application period;
    • Discontinued activities must represent 25% of total eligible income;
  • Observe a drop in income of at least 40% for the application period (or the previous month).

This means that a company or organization outside the tourism and hospitality sector could benefit from the PRTA.

Unlike the PRTA component for tourism and hospitality businesses, it is not necessary to observe a minimum decline calculated over the 12 months from March 2020 to February 2021 to qualify.

Note that the PRTA and PREPDT programs each include a wage support component and a rent support component.

Tourism and Hospitality Recovery Program (PRTA) – Relaxation in the case of local confinement

For periods 24 to 26 (December 19, 2021 to March 12, 2022), the Tourism and Hospitality Stimulus Program will be more flexible.

You can qualify if you meet the following criteria, among others:

  • Have had to reduce capacity by 50% for at least 7 days;
    • Discontinued activities must represent 50% of total eligible income;
  • Observe a drop in income of at least 25% for the application period (or the previous month).

Recovery program for hard-hit companies (PREPDT)

Eligible companies

Companies not eligible for PRTA could benefit from PREPDT. The PREPDT provides eligible businesses in all sectors suffering significant losses with a wage subsidy and a rent subsidy for seven four-week periods between October 24, 2021 and May 7, 2022 (P22 to P28).

To be eligible, and in addition to the general eligibility conditions applicable for SSUC purposes, a company must not be eligible for PRTA and must meet the following two conditions:

  • Have a 12-month average drop in income, from March 2020 to February 2021, of at least 50%;
  • Have a drop in income of at least 50% for the application period (or the previous month).

Note that the PRTA and PREPDT programs each include a wage support component and a rent support component.

Subsidy rate

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