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A number of pages on the Government of Saskatchewan's website have been professionally translated in French. These translations are identified by a yellow box in the right or left rail that resembles the link below. The home page for French-language content on this site can be found at:

Renseignements en Français

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Corporation Income Tax

All resident corporations (except tax-exempt Crown corporations, Hutterite colonies and registered charities) have to file a corporation income tax (T2) return with the Canada Revenue Agency every tax year even if there is no tax payable. This includes:

  • non-profit organizations;
  • tax-exempt corporations; and
  • inactive corporations.

Corporations with a permanent establishment in Saskatchewan must calculate and remit Saskatchewan corporation income tax in addition to federal income tax. This is levied as a percentage of the share of a corporation's taxable income that is allocated to the province.

More information on filing corporation income tax is available through the Canada Revenue Agency

Tax Rates

Small Business Rate

Saskatchewan small businesses, defined as Canadian-controlled private corporations, pay a reduced rate (commonly known as the small business rate) of 2% on the first $500,000 of eligible business income earned up until December 31, 2017.

As of January 1, 2018, the small business income threshold is increased from $500,000 to $600,000. This change is pro-rated for corporate taxation years that straddle this effective date.

General Rate

The general tax rate applies to all income not eligible for the small business rate. Effective July 1, 2017, the general rate of corporation income tax decreased from 12% to 11.5%. Effective January 1, 2018, the general rate of corporation income tax increased from 11.5% back to 12%.

The tax rate changes are pro-rated for corporate taxation years that straddle the effective dates.

Manufacturing and Processing Rate Reduction

Corporations involved with manufacturing and processing (M&P) activities receive a tax reduction of up to two percentage points, depending on the extent of the company's presence in the province.

Saskatchewan's Corporation Income Tax Rates

 

Up to
July 1, 2017

July 1, 2017 to
December 31, 2017

As of
January 1, 2018

General

12.0%

11.5%

12.0%

M&P Profits

10.0%

9.5%

10.0%

Small Business

2.0%

2.0%

2.0%

SB Threshold

$500,000

$500,000

$600,000

Tax Incentives

Corporations may also qualify for other Saskatchewan tax credits in support of investments in manufacturing and processing, and research and development.

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