May 13, 2015
Manitoba Government Eliminates Corporate Income Taxes for Up to 2,000 More Small Businesses
– – –Budget 2015 Raises Small Business Tax-free Income Threshold to $450,000
Starting in 2016, small businesses in Manitoba will be able to earn even more income and still pay no provincial corporate income tax as Budget 2015 increases the income limit that qualifies for a zero per cent income tax rate to $450,000 from $425,000, Finance Minister Greg Dewar announced today.
“Our government is still the only one in Canada that has eliminated the small business tax. This is a tremendous boost to entrepreneurs in Manitoba that will free up more money for them to create jobs, and expand and grow the economy,” said Minister Dewar. “When we entered office, small businesses faced the highest small business taxes in the country. Now, Manitoba’s small businesses have the most competitive corporate income tax rate in Canada.”
The minister noted that $3.8 billion has been put back in the hands of Manitoba’s entrepreneurs since 1999 because of tax relief measures introduced by the Manitoba government.
“This is good news for small business owners. It means that we will have more money to invest in our businesses,” said Talia Syrie, owner, The Tallest Poppy.
In 2010, Manitoba became the only province to permanently eliminate the small business tax rate, which benefits about 85 per cent of taxable corporations in the province, the minister noted. Currently, 14,000 corporations pay no Manitoba corporate income tax as a result of the zero per cent rate. That number is expected to increase to 16,000 in 2016, Minister Dewar said.
“Due to tax relief measures introduced by the province, businesses will pay $446 million less than in 1999,” the minister said.
In addition to a competitive tax environment, Manitoba has numerous business advantages including:
- one of Canada’s most stable provincial economies over the past decade;
- a central location and excellent transportation links to the rest of North America and the world;
- low industrial and commercial land costs;
- among the world’s lowest electricity costs;
- a skilled, well-educated and affordable workforce, with a high labour force participation rate and low unemployment; and
- supportive research and development and innovation sectors.
Across Canada, provincial corporate income tax on $500,000 of taxable income ranges from a low of $9,000 in Manitoba to a high of $40,000. With the latest change, Manitoba corporations will pay only $6,000 starting in 2016, Minister Dewar said.
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