Released on January 5, 2005
Saskatchewan businesses will benefit from tax reductions in 2005.Effective January 1st, 2005, Saskatchewan's small business Corporate Income Tax rate drops from 5.5 per cent to 5 per cent and the Corporation Capital Tax exemption for Saskatchewan-based companies will increase from $17.5 million to $20 million.
"We are continuing to provide meaningful tax relief to Saskatchewan businesses," Finance Minister Harry Van Mulligen said.
Since 2001, the small business Corporate Income Tax rate has decreased by 3 per cent from 8 per cent to today's 5 per cent rate. The Corporation Capital Tax exemption for Saskatchewan-based companies was increased in 2002 from $10 million to $15 million and has now been increased to $20 million.
Businesses will also benefit from the government's decision to fully index the personal income tax system for 2005 as it improves Saskatchewan as a place to work.
"We are working to ensure our tax rates are fair and competitive," Van Mulligen said. "This latest reduction in business taxes confirms the government's commitment to Saskatchewan businesses."
In addition to the tax reduction for small businesses, Saskatchewan provides corporations involved in manufacturing and processing (M&P) a reduction in the general tax rate to as low as 10 per cent on M&P profits, depending on the extent of the company's presence in the province.
Saskatchewan also offers tax credits to encourage corporations to make investments in M&P capital assets, research and development activities and film production.
-30-
For More Information, Contact:
| Debbie Clark Finance Regina Phone: (306)787-8109 |