Government of Saskatchewan ministries, Crown corporations and organizations are working to minimize the impacts of the postal service disruption.

Les ministères, les sociétés d’État et les organismes du gouvernement de la Saskatchewan travaillent à réduire au minimum les répercussions de l’interruption des services postaux.

Google Translate Disclaimer

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

Where an official translation is not available, Google™ Translate can be used. Google™ Translate is a free online language translation service that can translate text and web pages into different languages. Translations are made available to increase access to Government of Saskatchewan content for populations whose first language is not English.

Software-based translations do not approach the fluency of a native speaker or possess the skill of a professional translator. The translation should not be considered exact, and may include incorrect or offensive language. The Government of Saskatchewan does not warrant the accuracy, reliability or timeliness of any information translated by this system. Some files or items cannot be translated, including graphs, photos and other file formats such as portable document formats (PDFs).

Any person or entities that rely on information obtained from the system does so at his or her own risk. Government of Saskatchewan is not responsible for any damage or issues that may possibly result from using translated website content. If you have any questions about Google™ Translate, please visit: Google™ Translate FAQs.

Manufacturing and Processing Tax Credits

If you are a manufacturing and processing corporation with business in Saskatchewan, you may qualify for a manufacturing and processing tax credit.

Saskatchewan Manufacturing and Processing Profits Tax Reduction

The Manufacturing and Processing (M&P) Profits Tax Reduction applies to firms in the manufacturing and processing industry. Eligible corporations can reduce their Saskatchewan income tax rate on Canadian manufacturing and processing profits by as much two percentage points. Saskatchewan-based firms with a high allocation of income to Saskatchewan will receive a larger tax reduction than firms with a low allocation of income.

The reduction is administered by the Canada Revenue Agency. Corporations must complete Schedule 404 in the T2 Corporation Income Tax return. Credits will be applied directly against any Saskatchewan Income Tax payable calculated on the T2 return.

Manufacturing and Processing Investment Tax Credit

The Saskatchewan Investment Tax Credit (ITC) for M&P provides M&P corporations with a refundable tax credit for expenditures made on qualifying machinery and equipment that is made available for use in Saskatchewan.

The M&P ITC for qualifying new equipment is administered by the Canada Revenue Agency on behalf of Saskatchewan. It may be claimed by including a completed Schedule 402 with the annual T2 Corporate Income Tax Return.

The M&P ITC for qualifying used equipment on which PST has been paid is administered by the Ministry of Finance. It must be claimed by applying directly to Saskatchewan Finance.

Manufacturing and Processing Exporter Tax Incentive

The M&P Exporter Tax Incentive provided non-refundable tax credits to eligible corporations that expanded the number of M&P-related full-time employees above the number that were employed in 2014. Eligible businesses were those that derived at least 25 per cent of revenues from export to the rest of Canada or internationally of their manufactured goods each year and that:

  • "manufactured or processed" goods for sale as defined in the federal Income Tax Act; or
  • were principally involved in the commercial development of "new economy" products for export, including interactive digital media products and creative industry products.

This program ended as of December 31, 2023. Applicants with a Certificate of Eligibility for the 2023 taxation year may submit a claim form for unused credits.

Apply

Apply for the Manufacturing and Processing Investment Tax Credit on Used Equipment

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